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However, the financial statements are not sufficient for decision-making as they are and further analysis is needed before they can be relied on. Financial analysis enhances this by identifying trends through ratio analysis, which then allow the user to draw meaningful conclusions.
Financial information is important especially to the shareholders of an entity. They expect a return on their investments measured by the profitability of the company and could take the form of dividends, bonus issues, rights issues and exercising options and warrants.
Banks are the barometers as it were of the financial health of most economies in the world...
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