What are the limitations of financial analysis?

The limitations of financial analysis are reflected in five aspects:

(1) timeliness of report data;

(2) the authenticity of the report data;

(3) Reliability of reported data;

(4) Comparability of reported data;

(5) report the integrity of the data.

Financial analysis is a process of systematically analyzing and evaluating the financial status, operating results and future development trend of an enterprise by using special methods according to its financial statements and other information.

Financial analysis is based on enterprise financial reports and other relevant materials, which evaluates and analyzes the financial status and operating results of enterprises, reflects the advantages and disadvantages and development trends of enterprises in the process of operation, and thus provides important financial information for improving enterprise financial management and optimizing economic decision-making.