Comparative and Liquidity Financial Analysis

An analysis of the financial statements of an entity is very important, for many reasons, relevant to its business. The financial analysis did not only make it possible to assess an entity's past financial activity but also provide the basis for future forecasts. It also made it possible to compare past performance reports with forecasts for the future to see if the entity is improving or not. Interested parties, in the analysis of an entity's financial statements, are numerous (such as creditors, investors, managers, employees, etc.) because among these analyzes you can also assess the company's position in comparison to other entities. Liquidity is not just a measure of the amount of money that an entity has, it is also a measure of the ease of an entity to convert cash assets and raise the level of money. In other words, liquidity means the speed of getting money into our hands, whenever the need for money arises.