The Role of Financial Statement Analysis in Supporting Islamic-Based Corporate Strategic Decision Making

Abstract

Financial statement analysis is an important tool used by companies to assess their overall performance and financial condition. This study aims to analyze the role of financial statement analysis in supporting strategic decision-making and the formulation of a company's business strategy. The method used in this study is a qualitative descriptive method with a literature study approach, namely examining various theories and concepts related to financial statement analysis and business strategy. The results of the study indicate that financial statement analysis plays a very significant role in providing relevant and accurate information regarding the level of liquidity, solvency, profitability, and operational efficiency of the company. This information serves as the basis for management in evaluating financial performance and identifying the company's strengths and weaknesses. In addition, financial statement analysis also helps in assessing the effectiveness of implemented business strategies and serves as a reference in formulating more appropriate and adaptive strategies in the future. In the context of strategic decision-making, financial statement analysis contributes to determining the company's investment, funding, and operational policies. Thus, it can be concluded that financial statement analysis serves not only as a tool for evaluating past performance but also as a basis for planning and developing sustainable business strategies. Therefore, companies are advised to conduct regular financial statement analysis to improve the quality of decision-making and improve their competitiveness.