Financial Analysis is a comprehensive process of examining financial data and reports to gain insights into the financial health and performance of an individual, organization, or entity. This analysis typically involves reviewing key financial statements such as the income statement, balance sheet, and cash flow statement to identify patterns or trends. For example, a business might use financial analysis to determine the profitability of its operations by calculating ratios like the net profit margin or the return on equity. In project management, financial analysis can help assess the feasibility of an investment or a project by evaluating metrics like the net present value (NPV) or the internal rate of return (IRR). By applying financial analysis techniques, stakeholders can make informed decisions such as allocating resources effectively, setting budgets, or identifying areas for cost reduction.