Question

describe financial statement analysis do in your life

Answer 1

financial statement analysis helps in better understanding of the financial market as it protect me from various kind of material misstatement and frauds and help me to read the data which are hidden in nature.

financial statement analysis is an art which helps an individual to protect himself while investment into the stock as well as other markets, because financial statements are the documents which are prepared to lure the investors in order to invest into the stocks and which have been projected with some high growth picture which will attaract an investor to invest into the stock.

I have personally benefited a lot by analysing different kind of financial statement, that have helped me to discover good companies at low valuation as well as skipped good companies because they are extremely valued or financial statements with showing Red flag.