Financial statements provide information about financial status and operating results for information users, but they cannot provide accurate information. Only through the analysis of financial statements can information users get accurate information and then guide management and decision-making.
The essence of financial statement analysis is to reflect the significance of various accounting data in the financial situation and business activities of enterprises and their changing trends in a certain period. Its purpose is to identify and provide various trends and relationships contained in the figures of accounting statements, and to provide financial information such as solvency, profitability, operational ability and development ability of enterprises for interested parties, especially investors.