This document discusses financial statement analysis. It defines financial statement analysis as the process of determining the financial strengths and weaknesses of a firm by analyzing relationships among financial factors disclosed in financial statements. The objectives of analysis include measuring solvency, operating efficiency, profitability, and growth potential. Analysis is based on accounting conventions and recorded facts but also involves personal judgment. Analysis is used by management, financiers, creditors, investors, and owners. Types of analysis include external vs internal analysis and horizontal vs vertical analysis. Limitations include lack of standard terms, qualitative factors, and effects of price changes or analyst bias. Tools include various analytical techniques.