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Directions: Read the following passage carefully:
Financial analysis is essential for identifying the financial strengths and weaknesses of a firm. It involves establishing relationships between the various items in the balance sheet and profit and loss statement. Management, creditors, investors, and other stakeholders use financial analysis to assess a firm's performance. It provides crucial insights into profitability, liquidity, solvency, and efficiency. This analysis can differ based on the analyst's purpose, as each user has different interests and objectives.
What is the main focus of financial analysis?