Final answer:
The objectives of financial statement analysis can vary depending on the perspective of the user.
Step-by-step explanation:
An objective of financial statement analysis is to provide valuable insights and information to different users of financial statements. The objectives of analysis may vary depending on the perspective of the user. For example, investors may analyze financial statements to assess the financial health and profitability of a company, while creditors may focus on the company's ability to repay debts.
Some common objectives of financial statement analysis include assessing the company's liquidity, profitability, solvency, and efficiency. These objectives help users make informed decisions about investing, lending, or partnering with the company.
Example: If an investor is analyzing a company's financial statements, they may be interested in the profitability ratios such as return on equity (ROE) or return on assets (ROA), which can give insights into the company's ability to generate profits.