Page 27 - DBP5043

FINANCIAL ANALYSIS

Users of financial statement

4. Current and future employees

Employees are part of the company and feel that their contribute to the
firm’s profitability. They need the financial statement to determine the
monetary benefits that they can obtain from the firm.

5. Prospective investor

They need to analyze the firm’s financial statement to assess profitability,
stability, growth potential and financial health. They also want to assess the
efficiency of management before deciding whether to invest in the firm.

6. Customers

Customer would want to ensure that the company can deliver not only the
goods ordered. They want to ensure the company provide after sale
customer service

7. Government

Various government ministries and department require financial statement
to a firm’s declaration and payment of taxes and utilities and make
expansion plans for the economy.