Financial statement analysis involves examining a company's financial reports to assess its health, performance, and profitability through liquidity, profitability, solvency, and efficiency metrics. Business analysis expands on this by evaluating strategic, operational, and economic factors impacting the company. Key components include credit and equity analysis, with tools like ratio analysis, cash flow analysis, and prospective analysis to forecast future performance. Understanding the interconnections between financial statements, such as the balance sheet, income statement, and cash flow statement, is crucial for comprehensive analysis. Additionally, external factors like accounting standards, management motivations, and regulatory environments significantly influence financial reporting and analysis.