Abstract: Strategic financial analysis is an in-depth methodology that allows companies to evaluate their financial performance, maximize resource utilization, and make sound long-term decisions. By combining financial information with corporate strategy, organizations can analyze profitability, liquidity, solvency, and operational effectiveness while determining risks and opportunities for growth. This analysis utilizes key methodologies like ratio analysis, trend analysis, cash flow forecasting, and scenario planning to deliver actionable insights to stakeholders. A key element of strategic financial analysis is ratio analysis, which analyzes liquidity (current ratio, quick ratio), profitability (net margin, return on equity), and leverage (debt-to-equity ratio). Trend analysis enables monitoring of financial performance over time, and cash flow forecasting guarantees sustainable liquidity management. Scenario planning enables firms to plan for economic uncertainty, regulatory change, and market shocks. Benchmarking against industry norms also assists in determining competitive positioning. Sophisticated financial techniques like discounted cash flow (DCF) analysis, SWOT analysis, and sensitivity testing also support better decisions in capital budgeting, mergers and acquisitions (M&A), and risk management. Organizations that use these methods can maximize investment strategy, enhance cost efficiency, and align business goals with corporate vision. Strategic financial analysis is crucial in today's uncertain economic environment to sustain resilience and competitive edge. Organizations that implement evidence-based financial decisions build stakeholder trust, manage risks, and achieve sustainable growth. Additionally, combining financial analysis with cutting-edge technologies such as AI and big data analytics enhances forecasting accuracy and operational efficiency. Ultimately, strategic financial analysis gives organizations the authority to make proactive, well-educated decisions, guaranteeing long-term stability and value creation. Through constant fine-tuning of financial strategies, businesses can adapt to changing market conditions, profit from opportunities, and find sustainable success.

Keywords: Strategic financial analysis, financial performance, ratio analysis

| DOI: 10.17148/IARJSET.2025.124105