This document discusses financial statement analysis and its importance. It covers key topics like the difference between an annual report and financial statements, tools for financial statement analysis including ratio analysis, horizontal analysis, and vertical analysis. Ratio analysis can evaluate a company's liquidity, asset management, debt management, profitability, and market value. The document also includes an example of fundamental analysis using financial ratios to evaluate a company. In summary, financial statement analysis is used to assess a company's financial health, make investment decisions, and plan for the future.