Financial Analysis and Its Role in Corporate Decision-Making

“Financial Analysis and Its Role in Corporate Decision-Making”

Submitted by

Harsh Singh

Enrollment number: 23042010400

Under the guidance of

Dr. Shilpa Bahl

Mba 2023-2025

School of business

Galgotias university

Abstract
Financial analysis plays a critical role in corporate decision-making by offering an empirical and structured framework to evaluate a firm’s financial position and future performance. This research investigates the extent to which financial analysis informs strategic decisions, resource allocation, and risk mitigation across various industries in India. Utilizing both qualitative and quantitative methodologies—including case studies, surveys, and statistical analyses—the study affirms the strategic importance of financial tools like ratio analysis, cash flow analysis, capital budgeting, and predictive modelling. Findings suggest a positive correlation between the use of financial analysis and effective decision-making, with companies demonstrating enhanced agility, performance, and long-term value creation.