What is the focus of financial analysis?

The focus of financial analysis is to evaluate financial data for decision-making. This process involves reviewing and interpreting financial statements, cash flows, and other financial metrics to assess a company's performance and potential future performance. By analyzing financial data, stakeholders—such as management, investors, and creditors—can make informed decisions regarding investments, budgeting, and operational efficiency.

Through financial analysis, various aspects such as profitability, liquidity, and solvency are examined, allowing for a clearer understanding of a company's financial health. This analysis is crucial for strategic planning and identifying areas of improvement, which ultimately assists in guiding decision-making processes within an organization.

The other options relate to strategic aspects of business management that, while important, do not directly pertain to the core purpose of financial analysis. Marketing strategies, employee salaries, and consumer trend predictions involve different sets of data and analysis methodologies that go beyond the financial metrics central to financial analysis.