The Importance of Financial Analysis for Planning and Control Using the Liquidity and Profitability Index for a Sample of Private Commercial Banks from (2016 -2023)

Abstract

This research addressed the importance of financial analysis for planning and control of a sample of Iraqi private commercial banks (Commercial-United) for the period from 2016 to 2023, using the liquidity and profitability index of the financial data published in the annual reports. The conclusion was about the importance and prominent role of financial analysis in evaluating the bank's financial position, estimating profitability and liquidity, and its main role in the bank's future planning process and internal control, identifying strengths and weaknesses, and working to address weaknesses in exchange for exploiting and expanding strengths. Among the most important recommendations are emphasizing the importance of financial analysis in the process of diagnosing and evaluating performance, emphasizing the need to keep pace with developments and modern methods by financial analysts, and emphasizing the need to follow the principle of transparency and disclosure in the financial statements of the annual financial statements to ensure the credibility of the evaluation and thus assist in the process of making appropriate decisions.A comparison was made between two private commercial banks in Iraq, namely the Commercial Bank and the United Bank. It was shown, using financial ratios, which bank is the winner and which is the loser. The performance of both banks was also evaluated through the results reached using the ratios and comparing them with the financial stability indicators of the Central Bank and the Basel standard. Thus, these results are limited to help in the process of future planning and control.