The building blocks of financial statement analysis include (1)liquidity,(2)solvency,(3)profitability,and (4)market prospects.

Liquidity

A measure of the ease with which an asset can be converted into cash without significantly affecting its value.

Solvency

The ability of a company or individual to meet long-term financial obligations, indicating they possess more assets than liabilities over the long term.

Profitability

A measure of the efficiency and effectiveness of a company in generating profit from its operations.