A financial statement analysis allows a firm to understand their future, make some strategies for success, and manage their financial history. (David, David, & David 2020) Financial statements in themselves allow for that history to show through into the statement analysis. Year after year these statements tell a story, so the main way I would use them is to learn from the past. It not only lets you learn from the successes but also the attempts at success that did not go as planned. A year might have gone by that you did not place as much money into marketing and that may have shown to be less of a success even though you spent less money in the marketing department. I would now have that information since I had all of the financial statements to look back on. Whether I am setting a new budget for the upcoming year or deciding how to pay out in dividends for next year these statements/histories are key.

Do you agree. Please explain