Question 1 of 30 O Analysis of Financial Statements Financial analysis indicates a company's relative strengths and weaknesses. Selectuse this information to improve the firm's operations and stock price; Select use this information to evaluate whether borrowers have the ability to pay off loans; and security analysts use this information to forecast earnings, dividends, and stock prices. Financial analysis compares a firm's performance to other o firms in the same industry and evaluates trends in the firm's financial position over time. Select are the tools used in financial analysis and they are grouped into five categories: (1) Liquidity, (2) asset management, (3) debt management, (4) profitability, and (5) market value