Financial data analysis represents the relationship between the various financial statements to establish a valid conclusion about the financial background of the company. It makes use of records and statistics based on the profits and losses, financial deals, accounts, balance and other financial information that are prepared after the end of a fiscal year. The data is interpreted to estimate the financial unassailability of the business conducted throughout the year. It must be accomplished with the help of prior knowledge and information about the concerned company in order to draw comparisons and to identify the changes in financial position and strengths of the firm over time.
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