Which of the following is an objective  of financial statement analysis?

A) Assess the current profitability
B) Assess the operational efficiency
C) Ascertain the relative importance of different components of the financial position of the firm
D) To identify the reasons for change in the profitability/financial position of the firm
E) To judge the ability of the firm to repay its debt and assessing the short-term as well as the long-term liquidity position of the firm

ABCDE

The various objectives of analysing financial statements of a company is to evaluate the overall profitability and operational efficiency of the firm and its various departments to determine the financial health of the organization. It also determine the significance of different financial components in the firm's financial position and investigate and understand the factors contributing to changes in the firm's profitability and financial position over time. It helps in assessing the firm's capacity to meet debt obligations and evaluate both short-term and long-term liquidity positions.