There is an often debates topic about the reliability of the financial analysis. Certain mandatory requirements and certain assumptions about the company data need to be making financial data. The financial statements are broken down into a number of individual components. The principles elements work according to resemblance and affinity factors. It is imperative to have a balance sheet along with the profit and loss accounts that need to be completely re-casted and presented from entirely different original shape (Palepu, Healy and Peek, 2013). The second step is the factoring of the significant relationship. These are linked between individual components of the balance sheets along with the profit and loss account. The next factor is the establishment of the significant relationship between individual components of the balance sheet while factoring in the profit and loss account. Some of the application tools of financial analysis that is used are ratio analysis, trend analysis and common size balance sheet. The result that is obtained by the means of financial tools is evaluated. The use of the financial analysis aids to highlight the fact that concerns the managerial performance along with credibility of the corporate efficiency (Benninga, 2008). The intangibles and credit worthiness of the company must be mandatorily considered. Owing to this, it can be alluded that the financial analysis is dependent on the credit worthiness and the credibility of the company. The evaluation of these financial methods is detailed in the following.