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#cfa-level-1 #reading-22-financial-statement-analysis-intro
The answer to a specific financial analysis question is rarely the numerical answer alone. Rather, the answer to the analytical question relies on the analyst’s interpretation of the output and the use of this interpreted output to support a conclusion or recommendation.
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4.4. Analyze/Interpret the Processed Data
Once the data have been processed, the next step—critical to any analysis—is to interpret the output. The answer to a specific financial analysis question is seldom the numerical answer alone. Rather, the answer to the analytical question relies on the analyst’s interpretation of the output and the use of this interpreted output to support a conclusion or recommendation. The answers to the specific analytical questions may themselves achieve the underlying purpose of the analysis, but usually, a conclusion or recommendation is required. For example, an


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