Which term describes the process of evaluating the financial performance of a company?

The process of evaluating the financial performance of a company is referred to as financial analysis. This practice involves the assessment of financial data, including income statements, balance sheets, and cash flow statements, to determine how effectively a company is utilizing its resources and generating profits. Financial analysis can help stakeholders, such as investors, management, and creditors, gain insights into a company's financial health, identify strengths and weaknesses, project future performance, and make informed decisions.

In contrast, market research focuses on understanding consumer preferences and market trends, which does not directly assess a company's financial situation. Competitive intelligence refers to gathering and analyzing information about competitors to inform strategic decisions, rather than evaluating a specific company's financial performance. An operational review examines the efficiency and effectiveness of a company’s operations, but it does not primarily concentrate on financial metrics. Thus, financial analysis is the most accurate term for the process of scrutinizing financial performance.