The Role Of Financial Analysis In Assessing The Financial Situation Of Economic Institutions

Abstract

This study examines the role of financial analysis in assessing the financial situation of firms through the use of financial balance indicators. The objective is to provide information that supports decision-making and the evaluation of financial performance. A descriptive-analytical approach was employed, dividing the study into two main parts. The first part presents the theoretical framework of financial analysis and financial balance indicators, while the second part applies these concepts to the financial statements of Bakkar Electric Poles Company for the period 2023–2024. The findings reveal that Bakkar Electric Poles Company successfully maintained its financial balance throughout the study period, indicating a healthy margin of safety.