What is financial analysis? Briefly describe the purpose and content of enterprise financial analysis.

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.

The purpose of financial analysis is to comprehensively analyze financial reports and other enterprise-related information, and draw concise and clear analysis conclusions, thus helping enterprise stakeholders to make decisions and evaluations. Specifically, it can be divided into: providing basis for investment decision, credit decision, sales decision and macro-economy; It provides a basis for evaluating, supervising and selecting managers in enterprise internal management.

The contents of financial analysis mainly include: 1. Interpretation of accounting statements: generally including three parts, namely: quality analysis of accounting statements, trend analysis of accounting statements, and structure analysis of accounting statements); 2. Profitability analysis; 3. Solvency analysis; 4. Operational capacity analysis; 5. Development capacity analysis; 6. Comprehensive financial analysis (specific methods include DuPont analysis and Wall score).