What does the analysis of financial statements help to determine in quantitative analysis?

The analysis of financial statements plays a crucial role in quantitative analysis as it evaluates a company's financial health, allowing stakeholders to assess whether certain actions can be pursued and what the potential financial impact might be. This includes understanding revenues, expenses, assets, and liabilities, which is essential for decision-making regarding investments, expansions, or other strategic initiatives.

By examining financial metrics derived from statements such as the balance sheet, income statement, and cash flow statement, analysts can project future performance, which inherently addresses the feasibility of various operational strategies and their expected financial implications. This analysis helps to gauge not just the ability to proceed with certain plans but also the anticipated costs and benefits, enabling better risk management and resource allocation.

While the other options may touch upon aspects of financial analysis, they do not encapsulate the primary purpose of assessing financial statements in terms of decision-making and evaluating financial impact as effectively. For instance, completeness of reported claims pertains more to claims management rather than overall financial viability, while relevance of past operations may influence analysis but is not a direct focus of financial statement review. Similarly, consistency across reports is important for reliability, but it doesn't directly inform the quantitative analysis needed for assessing potential impacts of actions taken.