Financial analysis is a set of methods for extracting information primarily from financial statements. Good financial analysis comes from good understanding. And good understanding is provided by a conceptual framework that helps the analysts organize their thinking. In our information age, there are large amounts of information about firms to be processed.A conceptual framework guides the managers and analysts in using this information intelligently and economically – to turn the information to knowledge and to utilize it in practice. This book works from a conceptual framework that covers differences between financial statement analysis and financial analysis orientated in partial areas of business activities. Chapter 1 deals with business combination accounting and the role of consolidated financial statement analysis, its content, goals and utilization. Chapters (2–5) of the book represent separate area of business activities and content key analyst’s tools, methods and economic interpretation of them. They integrate accounting concepts with the view of business economics and finance in analysis and show how the structure of accrual accounting can be exploited for analysis. To comprehend the text material, the reader should have a basic course in financial accounting and basic course in finance and business economics, too. Chapters 6 and 7 have additional character. They include the problems of internal auditing and business diagnostics and uncover wide possibilities of using them in financial management of the firms.