Financial assessment involves using financial data to assess a company’s performance and make recommendations about how it can improve going forward. A current assessment is normally made using gathered historical data, credit-worthiness and accrued capital. Projections of how the company is likely to perform in the future based on viability, stability, and profitability of the business are then added to give an overall picture.
Financial assessment is the process of analyzing and evaluating a business in order to determine its performance. Typically, financial assessment is used to determine whether a company is stable, solvent, liquid or profitable enough to warrant a monetary investment. When looking at a specific company, a financial analyst conducts analysis by focusing on the income statement, balance sheet, and cash flow statement.