While Managerial Economics is the application of economics in decision making, financial analysis judges financial performance of a firm. Several methods of analysis have been examined in the book, the two main tools being ratio analysis and analysis of balance sheet and profit and loss account of the firms. The book examines several steps involved in financial analysis: Establishing the objectives of the analysis Studying the various operations of the industry Collection of information relevant for preparing financial statements and their evaluation Salient Features Chapter summaries, problems and their solutions at the end of each chapter. Multiple Choice Questions (MCQs) along with answers provided at the end of the Book.