There is a general consensus in the financial literature that the main objectives and purposes of financial analysis are to interpret, evaluate and transform accounting information into useful data for economic and financial decision-making (AICPA, 1973; IASB, 2018). However, within this utilitarian approach, a fundamental problem persists: the heterogeneity of users of financial information and their potentially conflicting interests. From a theoretical perspective, financial analysis cannot be understood as a neutral process, but rather as an instrument conditioned by the specific objectives of financial users, such as investors, creditors, administrators, and regulators (Penman, 2013; Palepu et al., 2020). In this sense, the central problem lies in the fact that there is no single, universal objective or interest, but multiple objectives and interests derived from the diversity of users.

The explicit recognition of interests allows us to recognise that the objectives of users of financial analysis are contingent, depending on the type of user, the economic environment, and the nature of the decision to be made. Thus, the purpose of this study is to offer a comprehensive view of the objectives and purposes of financial analysis, emphasising that these emerge from the interaction between available information and the needs of heterogeneous users. In normative terms, the basic objective of financial statements and financial analysis is to provide useful information for economic and financial decision-making, particularly for the efficient allocation of scarce resources (FASB, 2010; AICPA, 1973). However, this general objective is insufficient to capture the complexity of real decisions, in which factors such as risk, uncertainty, and expectations intervene.

Methodological diversity of financial analysis

One of the main characteristics of financial analysis is the existence of multiple methodologies, each designed to address specific dimensions of business performance. This methodological diversity implies that the choice of analysis type is not neutral but must align with the user's objectives and purposes (Koller et al., 2020).

The problem of decision-making under uncertainty

The financial analysis process takes place in an environment characterised by uncertainty, in which the decision-maker evaluates probability distributions over future states of the economy (Damodaran, 2012). In this context, financial analysis works as a tool to reduce uncertainty, although it does not eliminate it.

However, the coexistence of multiple methodologies and perspectives generates an additional problem: the impossibility of simultaneously satisfying all interests. What is optimal for an investor may not be optimal for a creditor or for management. This conflict aligns with agency theory, which highlights tensions between different interest groups (Jensen & Meckling, 1976).

Objectives of financial analysis from an internal and external perspective

The objectives of financial analysis can be grouped into two main approaches:

1. Internal focus

Oriented to business management, it seeks:

• Optimise resource allocation

• Evaluate operational performance

• Support strategic planning

• Maximize profitability

2. External Focus

Market-related, it includes:

• Evaluate investment opportunities

• Determine the market value

• Analyse financial risk

• Facilitate financing decisions

In both cases, the ultimate objective is usually associated with maximising the value of the company, although this concept is also debated in contemporary literature due to its relationship with sustainability and social value criteria (Damodaran, 2012; Koller et al., 2020).

Users of financial analysis and their objectives

The statement and purpose of the objectives also require knowing and specifying the nature of the interests and commitments of the stakeholders in the financial analysis, which is why Table No.2 presents a summary of the users and the different objectives and commitments that the stakeholders seek as a result when using the various methodologies of financial analysis.

Economic and financial indicators are useful tools that benefit organizations by facilitating timely and appropriate decision-making about their corporate and financial strategies. Next, the evolution of key economic and financial indicators in the Mexican environment is described to facilitate decision-making for personal and business strategies in an integrated manner.

1. National Consumer Price Index (INPC, Spanish)

2. The Price and Quotation Index of the Mexican Stock Exchange (IPC, Spanish)

3. Exchange rate

4. Equilibrium interbank interest rate (TIIE, Spanish)

5. CETES rate of return

6. Investment units (UDIS, Spanish)

1. NATIONAL CONSUMER PRICE INDEX (INPC)

Born in 1995, it reflects changes in consumer prices and measures the country's general price increase. It is calculated fortnightly by the Bank of Mexico and INEGI (2021). INPC is published in the Official Gazette of the Federation on the 10th and 25th of each month. The reference period is the second half of July 2018.

2. THE PRICE AND QUOTATION INDEX OF THE MEXICAN STOCK EXCHANGE (IPC)

Represents the change in the values traded on the Mexican Stock Exchange concerning the previous day to determine the percentage rise or fall of the most representative shares of the companies listed therein.

3. EXCHANGE RATE

It is the value of the Mexican peso against the dollar calculated from the daily average of the five most important banks in the country, which reflects the spot price (cash) negotiated between banks. It is closely related to Inflation, interest rates, and the Mexican Stock Exchange.

4. EQUILIBRIUM INTERBANK INTEREST RATE (TIIE)

On March 23, 1995, the Bank of Mexico, to establish an interbank interest rate that better reflects market conditions, released the Interbank Equilibrium Interest Rate through the Official Gazette of the Federation.

5. CETES RATE OF RETURN

6. INVESTMENT UNITS (UDIS)

The UDI is a unit of account of constant real value to denominate credit titles. It does not apply to checks, commercial contracts, or other acts of commerce.

DISCUSSION AND FINAL THOUGHTS

Financial analysis should not be conceived only as a set of techniques, but as an interpretative process oriented by specific objectives. The simple identification of methodologies is insufficient if it is not accompanied by a clear definition of the purposes pursued. In this sense, the main contribution of financial analysis lies in its ability to:

• Anticipate risks

• Detect structural weaknesses

• Evaluate strategic alternatives

• Supporting rational decisions

However, heterogeneous user populations introduce structural limitations, as objectives may be incompatible. Therefore, the definition of the objectives of financial analysis requires an explicit approach that considers:

1. The nature of the user

2. The economic context

3. The type of decision

In conclusion, the objectives and purposes of financial analysis are not universal or static, but constitute a dynamic construction derived from the interaction between information, context and interests, which represents both its greatest strength and its main theoretical and practical challenge.

REFERENCES

American Institute of Certified Public Accountants. AICPA. (1973). Study Group on the Objectives of Financial Statements. Objectives of financial statements: Report of the Study Group on the Objectives of Financial Statements. American Institute of Accountants. https://egrove.olemiss.edu/dl_aia/367

BANXICO. (2025). Economic Information System. Mexico: Banco de México. Link: https://www.banxico.org.mx/

Damodaran, A. (2012). Investment valuation of Any Asset. John Wiley & Sons, Inc. https://pages.stern.nyu.edu/~adamodar/pdfiles/val3ed/fm.pdf

Financial Accounting Standards Board (FASB). (2010). Conceptual framework for financial reporting. International Acounting Estándards Bord. https://www.ifrs.org/content/dam/ifrs/project/conceptual-framework-2010/edconceptualframeworkmar10.pdf

INEGI. (2024). Economic Information Bank. Mexico: National Institute of Geography and Statistics. Link: http://www.inegi.org.mx/sistemas/bie/

International Accounting Standards Board (IASB). (2018). Conceptual framework for financial reporting.https://www.xrb.govt.nz/dmsdocument/3124/

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm. Journal of Financial Economics, 3(4), 305–360.

Koller, T., Goedhart, M., & Wessels, D. (2020). Valuation: Measuring and managing the value of companies. Wiley.

Palepu, K. G., Healy, P. M., & Peek, E. 2020. Business analysis and valuation. Cengage.

Penman, S. H. 2013. Financial statement analysis and security valuation. McGraw-Hill.

Información adicional

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