Question: Financial statement analysis Financial statement analysis is a process conducted by internal and external parties to gain a better understanding of how a company is

Financial statement analysis

Financial statement analysis is a process conducted by internal and external parties to gain a better understanding of how a company is performing. For internal users, financial performance is examined to determine their respective companies' well- being and standing. For external users. nancial performance is analysed to determine potential investment opportunities and to determine if a company is worth their while. Despite financial statement analysis being widely used, it does not fail to deal with limitations. Hence, in your own words and understanding, and relevant examples, discuss THREE (3) limitations of using financial statement analysis in evaluating a company's nancial performance. (15 Marks)

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