Why are investors intersted in analysing Financial Statements?

1.	Why are investors intersted in analysing Financial Statements?
Answer» All publicly traded companies and large private entities prepare financial statements periodically. The purpose of creating financial statements is to capture a company’s financial position for a given period. This allows users of financial information to analyze and compare the health of one company to another. Financial statements provide assessment of a company’s profitability, liquidity and operational efficiency.

Discussion