Here, we will look at 1) theusers of financial statement analysis, 2)themethods of financial statement analysis, 3)key accounting reports(the balance sheet, income statement, and statement of cash flows) andhow they are analyzed, 4)other financial statement information, and5)problems with financial statement analysis.USERS OF FINANCIAL STATEMENT ANALYSISThere are different users of financial statement analysis. These canbe classified into internal and external users. Internal users referto the management of the company who analyzes financial statements inorder to make decisions related to the operations of the company. Onthe other hand, external users do not necessarily belong to thecompany but still hold some sort of financial interest. These includeowners, investors, creditors, government, employees, customers, andthe general public. These users are elaborated on below:1. ManagementThe managers of the company use their financial statement analysis tomake intelligent decisions about their performance. For instance, theymay gauge cost per distribution channel, or how much cash they haveleft, from their accounting reports and make decisions from theseanalysis results.2. OwnersSmall business owners need financial information from their operationsto determine whether the business is profitable. It helps in makingdecisions like whether to continue operating the business, whether toimprove business strategies or whether to give up on the businessaltogether.3. InvestorsPeople who have purchased stock or shares in a company need financialinformation to analyze the way the company is performing. They usefinancial statement analysis to determine what to do with theirinvestments in the company. So depending on how the company is doing,they will either hold onto their stock, sell it or buy more.