Financial analysis is like a physical check-up for your finances. It lets you know how you're doing. With financial analysis, the telling points are the Balance Sheet and the Income Statement. Figuring out what they are telling you is done by analyzing financial ratios - mathematical relationships between different entries on the Balance Sheet and the Income Statement.
There is a financial tool that helps business owners manage costs, make better pricing decisions, and improve profits. It's called breakeven analysis. The breakeven point is the sales volume at which a business neither makes a profit nor incurs a loss.