Financial analysis assesses a company's health through what means?

Financial analysis is a crucial process for evaluating a company's overall performance and stability. It primarily involves the examination of financial statements—such as the income statement, balance sheet, and cash flow statement—as well as relevant financial data. This assessment allows analysts to determine profitability, liquidity, operational efficiency, and solvency of the business.

By scrutinizing financial statements, various key performance indicators (KPIs) can be calculated, which help in understanding the financial health of the organization. For instance, trends in revenue, expenses, and net profit provide insights into operational success and areas that may require improvement. Furthermore, ratios derived from these statements, like the current ratio or return on equity, offer comparative measures against industry standards or historical performance.

The other options—such as organizational culture surveys, customer feedback reports, and competitive market analysis—while valuable in their contexts, do not provide a direct quantitative assessment of a company's financial health. Such analyses may contribute to strategic decision-making and understanding customer perceptions or market positioning but do not gauge the financial viability or stability of a company in the same comprehensive way that financial statements do.