Definition
Financial analysis is the evaluationThe systematic and objective assessment of a solution to determine its status and efficacy in meeting objectives over time, and to identify ways to improve the solution to better meet objectives. See also indicator; metric, monitoring. of an investment option. It assesses its expected financial viability, stability, and benefits. It also takes into account the total cost of a changeThe act of transformation in response to a need. as well as the total costs and benefits of using and supporting a solution.
Financial analysis deals with uncertainty. As a changeThe act of transformation in response to a need. initiativeA specific project, program, or action taken to solve some business problem(s) or achieve some specific change objective(s). progresses through its life cycleA series of changes an item or object undergoes from inception to retirement, the effects of uncertainties are better understood.
Why use financial analysis?
How to conduct a financial analysis

Read more by subscribing to the BA Toolkit
On top of the brief description of the method, access to:
- an explanation of when and how to use it,
- a practical example,
- tips and recommendations for use,
- downloadable checklists and templates,
- references for further reading,
- …