A financialstatement analysis, or financial analysis, gives a clear outlook of the performance of an organization. This is the process of reviewing and analyzing organizations financial statements, which include the income statement, balance sheet, and statement of cash flows. An analysis evaluates and compares present and past performance in order for management, investors and others to have assistance in making important decisions. This analysis presents the direction in which an organization is moving and will point out any areas that may need attention in order to correct. Typically, financial analysis is used to analyze whether an organization is suitable for investment, stable, solvent, liquid, or profitable enough to be invested in (Investopedia.com).