THE ROLE OF FINANCIAL DIAGNOSIS IN SELECTING THE FINANCIAL DECISION

Abstract

Financial decisions, regardless of their form, are made by the management of the entity on the basis of a prior financial diagnosis. When the purpose is to understand the implications and, at the same time, the compromises on which the financial decision related to operation, funding or investments is based, it is recommended to resort to different financial diagnosis methods and techniques. At the same time, an entity may also face financial problems that it can solve by using the correct financial diagnosis tools that generate the necessary answers.

Keywords

• financial diagnosis
• financial decision
• annual financial statements
• financial ratios