Financial analysis tools are crucial for several reasons:
- Decision Making: They provide valuable insights into the financial health of a business, aiding in strategic decision-making. - Performance Evaluation: These tools help in measuring and evaluating the performance of a company over time and against competitors. - Risk Management: By identifying financial strengths and weaknesses, these tools help in managing risks effectively. - Investment Analysis: Investors use financial analysis to assess the viability and potential return of their investments.