Purpose of financial analysis — who benefits and how? Choose the correct set of uses of financial analysis by different stakeholders (shareholders, banks, and internal management).

Introduction / Context:
Financial analysis converts raw accounting data into decision-ready insights for owners, creditors, and managers. Ratio analysis, trend analysis, common-size statements, and cash flow analysis are the backbone for investment, lending, and planning decisions.

Given Data / Assumptions:

• Stakeholders include shareholders, lenders (banks), and the firm's management.
• We are considering how financial analysis informs each stakeholder's decision.
• Analyses encompass profitability, liquidity, leverage, efficiency, and growth.

Concept / Approach:
Shareholders focus on risk-adjusted return versus alternatives; banks focus on repayment capacity and collateral coverage; management focuses on plan-versus-actual performance and capital allocation efficiency. Each use case is directly served by interpreting financial statements and key ratios.

Step-by-Step Solution:
Map shareholder needs to metrics like EPS, ROE, dividend coverage, and risk indicators.Map bank needs to liquidity (current ratio, quick ratio), leverage (debt/equity, interest coverage), and cash flow stability.Map managerial needs to budget variance analysis, ROCE, working capital cycles, and cash conversion cycles.Since all listed uses are valid, select “All of these”.

Verification / Alternative check:
Standard corporate finance texts present these three perspectives as the primary motivations for financial analysis, reinforcing their complementary nature.

Why Other Options Are Wrong:
Any single option alone ignores the multi-stakeholder utility of financial analysis; “None of these” contradicts universally accepted practice.

Common Pitfalls:

• Over-reliance on a single ratio without context, such as interpreting ROE without considering leverage effects.
• Ignoring cash flow statements and focusing only on accrual profits.

Final Answer:
All of these.