Businesses need tools that help them make smart & timely decisions. The financial reports like P&L, Balance Sheet, & Cash flow reports by themselves are limited in scope when it comes to providing deeper insights into the health of the business & thereby in supporting the decision making process. Unless one is well versed in reading the financial analysis & Modeling reports, the information provided by these reports may not be useful in drawing conclusions which are typically done based on KPIs of the business. This is where financial analysis & Modeling plays a key role, breaking down each element of financial statements by studying their interrelationship to arrive at the key ratios/indicators. These key parameters help the decision makers get an expanded view of the business situation by analyzing the profitability, liquidity, activity, solvency, operations & market standing of the business.

On the other hand, financial analysis & Modeling serves as a decision-making tool & answers the critical question concerning how the business is going to perform in the foreseeable future & provides the long term visibility into the business outlook.