Users of financial statements

Users of financial statements are individuals or groups who rely on a company's financial information to make informed decisions. These include managers, investors, lenders, suppliers, customers, and regulators. Managers use the data to run the business effectively. Investors and lenders analyze the statements to assess the company's financial health, profitability, and growth potential before investing or lending money. Suppliers and customers may review financial stability to determine trade terms or ongoing business relationships. Regulators ensure compliance with laws. Overall, financial statements help stakeholders understand the company’s financial position and performance to make sound economic decisions.