What financial metrics are included in the FA analysis?

Financial analysis, or FA analysis, primarily focuses on quantifying a company's performance through its key financial metrics. Revenue and net income are critical components of this analysis because they provide insight into a company's operational efficiency and profitability.

Revenue represents the total amount of money generated from sales of goods and services, serving as a fundamental indicator of business activity and market demand. Net income, on the other hand, reflects the profit remaining after all expenses, taxes, and costs have been deducted from total revenue. It is a crucial measure of a company's financial health and viability. By assessing these two metrics, analysts can gauge how well a company generates income relative to its expenses, which is essential for understanding its potential for growth and sustainability.

Other options, while important in various contexts, do not encapsulate the primary aspects of FA analysis as directly as revenue and net income. Cash flow and stock performance, for example, offer insights into liquidity and market sentiment but do not focus solely on financial operational effectiveness. Market share and customer loyalty are more related to competitive positioning and customer relationships than to direct financial results. Investment ratios and debt levels provide useful insights into capital structure but are not the primary metrics of financial performance that FA analysis aims to convey.