Yes, financial statements are a key component of financial analysis. They provide essential financial data used to assess a company's financial health, performance, and potential for future growth.
Financial statements are used to evaluate a company's liquidity, profitability, solvency, and stability to develop a complete picture of a company’s financial profile.
Business people use financial statements to assess the company's performance against industry standards, identify trends and patterns, evaluate the company's strengths and weaknesses, and forecast future performance.
Financial statements are also used by investors, lenders, and other stakeholders to make decisions about investing or lending to the company. They are an essential component of financial analysis and play a crucial role in the decision-making processes.