You can use the following to do sensitivity analysis –. Leverage 4. This article has been a guide to Types of Financial Analysis. It identifies the financial strengths and weaknesses of an organization by establishing the relationship between the items of the balance sheet and the profit and loss account. Likewise, in the Balance sheet on the asset side to disclose all the line items in the percentage form of total assets. give a correct picture of the financial solvency and burden on the firm in the form of external debts. In other words, financial statement analysis is a way for investors and creditors to examine financial statements and see if the business is healthy enough to invest in or loan to. It shows the business's retained earnings—the profit kept, or retained, within a business rather than distributed to owners or shareholders—both at the beginning and at the end of a specific reporting period. Analysis of financial statements should always be tuned to the objective. Variance Comparison of income statement and balance sheet numbers, in the form of ratios, can cre­ate difficulties due to the timing of the financial statements. The long-term analysis is also termed as Solvency analysis. Accordingly, we can classify financial statement analysis into different categories as follows: 1. The analysis is done from different angles. It is also called a profit and loss statement (P&L, for short). The main users of these financial statements are shareholders, debenture holders, bankers, and financial intermediaries, financial analysts, and all other stakeholders of the business. The analysis is done from different angles. Efficiency 8.  The two comparative statements are: 1. Financial statement analysis according to materials used include Internal and External analysis. It is otherwise called as static analysis. Financial statement analysis according to modus operandi include Horizontal and vertical analysis. The fixed assets structure, leverage analysis, ownership pattern of securities and the like are made in the long term analysis. Five types of Financial Statements: 1) Income Statement: FS Analysis & Interpretation | Procedure | Objectives | Importance, Interested parties of financial statements, Financial statements | Meaning | Nature | Features | Objectives, Objectives of Financial Statement Analysis, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |. Horizontal 3. 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