Building Blocks of AnalysisFinancial statement analysis focuses on one or more elements of a company’s financial condition or performance.We emphasize fourbuilding blocksof financial statement analysis:Liquidityandefficiency—ability to meet short-term obligations and to efficiently generate revenues.Solvency—ability to generate future revenues and meet long-term obligations.Profitability—ability to provide financial rewards to attract and retain financing.Market prospects—ability to generate