Financial Analysis
Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related entities to determine their performance, stability, and suitability for investment. It involves using financial statements, ratios, and models to assess profitability, liquidity, solvency, and efficiency. This skill is crucial for making informed decisions in areas like investment, lending, and corporate strategy.
Developers should learn financial analysis when working in fintech, banking, or any role involving financial data processing, such as building trading algorithms, risk management systems, or financial reporting tools. It helps in understanding business requirements, creating accurate financial models, and ensuring compliance with regulations, which is essential for developing robust financial software.