Financial statement analysis is a critical process for evaluating a company's financial performance, position, and prospects. Various tools and techniques are used in financial statement analysis to assess a company's health and make informed decisions. Some of the key tools and techniques include:

Ratio Analysis: This involves calculating and analyzing various financial ratios that provide insights into different aspects of a company's performance. Common ratios include profitability ratios (e.g., net profit margin), liquidity ratios (e.g., current ratio), leverage ratios (e.g., debt-to-equity ratio), and efficiency ratios (e.g., inventory turnover).

Common-Size Financial Statements: These statements express each line item as a percentage of total revenue, allowing for easy comparisons between different companies or periods.

Trend Analysis: Trend analysis involves comparing financial data over multiple periods to identify patterns, trends, and changes in a company's performance.

Vertical Analysis: Vertical analysis involves expressing each line item on a financial statement as a percentage of a specific base item. For example, each line item on the income statement can be expressed as a percentage of total revenue.