Title: The Role of Financial Analysis in Strategic Decision-Making
Authors: DR/Howyda Eltahair Hassan Taha
Volume: 9
Issue: 10
Pages: 255-275
Publication Date: 2025/10/28
Abstract:
This study examined the role of financial analysis in supporting strategic decision-making within organizations, emphasizing its importance in achieving planned objectives and optimizing resource utilization. The research problem emerged from the weak application of financial analysis tools in some institutions and sectors when making strategic and administrative decisions, which limits the effectiveness of such decisions. The significance of the study stems from the crucial role that financial analysis plays in enhancing the quality and efficiency of organizational decisions, as it serves as a key tool for assessing financial performance and forecasting future trends. The study hypothesized that regular reliance on financial analysis tools improves the efficiency and accuracy of strategic decisions. The study adopted a descriptive-analytical methodology, utilizing both primary and secondary data sources. The findings revealed that systematic use of financial analysis tools helps in the early identification of strengths and weaknesses in financial performance, thereby supporting operational efficiency improvement and profitability growth. The most important recommendations include enhancing integration between financial analysis and strategic planning. Ensuring alignment of financial decisions with the organization's long-term goals.