Why we need different tool for analyzing financial statement

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Discussion Post: Different Tools of Financial Analysis

There are different tools for analyzing the financial statements of a company, such as horizontal analysis, vertical analysis,ratios for measuring financial health and profitability, and so forth. But before we begin using these tools, it is important to know the purpose of each tool.

Why do we need different tools for analyzing financial statements? Don't the numbers in the financial statements speak for themselves?

Reference no: EM133676825

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