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    Ameen Sultan Palawan FSA-Summary

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    Ameen Palawan

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    Ameen Sultan Palawan FSA-Summary

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    Ameen Palawan
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    Ameen Sultan Palawan FSA-Summary

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    Ameen Palawan

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    Ameen Sultan Palawan

    Financial statement analysis is an important aspect of any business as it provides significant


    information and insights into the financial or total health of a company. There are different reasons why
    it is important for a business owner to make a financial statement analysis. To begin with, it helps with
    Assessing Profitability; by learning financial statement analysis it enables us to assess a company's
    profitability. Readers can measure the efficiency and effectiveness of a company's operations by
    analyzing key ratios like gross profit margin, operating profit margin and (net) profit margin. In addition
    to that, it helps with Evaluating Liquidity. where liquidity refers to a company's ability to meet its short-
    term obligations and provide insights on present cash solvency. By analyzing liquidity ratios, such as
    the networking capital, current ratio and quick ratio. This knowledge is important for investors and
    creditors when assessing the company's ability to handle financial obligations. Furthermore, it helps
    with Assessing Solvency. Solvency measures an entity’s long-term financial viability. It includes debt
    ratio, equity ratio and debt-equity ratio. Understanding a company's solvency is significant for potential
    investors and lenders, indicating its long-term stability. Moreover, it helps with Evaluating Activity. It
    measures an entity’s ability to use it assets and manage its liabilities effectively in the current period . It
    includes inventory turnover, receivable turnover and payable turnover. Beside this, This can help us to
    identify potential risks or opportunities for growth. As a student, taking a program of BSBA-
    Business Economics, FSA has a relevance in my course not just because it helps us make
    informed decisions about investing, lending, or managing our own finances. But also, we
    can use it for our future careers as a Financial Analyst, it will be going to help us
    to analyze financial data, make investment recommendations, and manage financial risk.
    As a Management Consultant, by giving some advice on companies on improving their
    financial performance and operations. As a Business Economist, to analyze economic data
    and trends to advise companies on strategic planning and decision-making, and to be an
    Entrepreneur, I could use financial statement analysis to track my own business's
    performance and make informed decisions about growth and resource allocation. In
    conclusion, financial statement analysis is a powerful and significant tool because it enables individuals,
    especially those users of information to understand or realize how was the total performance of a
    certain company. And with this knowledge we can make sure that investors, creditors, and business
    owners or decision makers can make informed and reliable decisions aligned with their goals and
    aspirations. It equips us with the knowledge and analytical tools needed to excel in
    our chosen career path within the field. Let’s appreciate the importance of financial statement
    analysis for us to unlock the pinnacle for financial success and or even economic success.

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