Financial statement analysis plays a significant role in the efficient operation of the capital market. Investors in capital markets want to be sure that the prices they pay for securities, such as ordinary shares and bonds, are fair prices. In order for security prices to be fair, the capital markets must be able to process relevant information quickly and accurately. Relevant information is anything that could affect security prices, eg previous movements in security prices, newly- released company financial statements, changes in interest rates or details of sales of their own companys shares by company directors. We say that a capital market is efficient when we are confident that security prices are fair. A capital market can be efficient when share prices in general are falling (a bear market) or rising (a bull market). Elucidate the role of financial statement analysis in ensuring capital market efficiency and the key performance indicators for this efficiency.