It is a process of reflection in order to assess the current and past the company's financial situation, as well as the results of its operations, with the basic objective of determining, in the best possible way, an estimate on the situation and future results.
The analysis process consists of the application of a set of techniques and analytical tools to the financial statements to deduce a series of actions and relationships that are meaningful and useful for decision-making. Consequently, the essential function of the analysis of the financial statements, is turning data into useful information, reason why the analysis of financial statements should be basically decisional.
According to this perspective, throughout the development of a financial analysis, the objectives pursued must be translated into a series of specific questions that must find an adequate response to financing or final decisions projected towards the future of the company.
Purpose of the service