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Abstract
The primary use of financial analysis is evaluating past performance and predicting future performance both of which are facilitated by comparisons. Therefore, the focus of financial analysis is always on the crucial information contained in the financial statements and depends on the objectives and purpose of such an analysis. Financial statements are to be critically evaluated to measure the profitability, operational efficiency, solvency and growth of business concerns. For this purpose, an individual item of statements is to be studied and the interrelationship with other related figures is to established.