Financial statement analysis is a crucial aspect of evaluating the financial performance and position of a company. It helps in understanding the strengths and weaknesses of a business, making informed decisions, and providing insights into the company's financial health. There are two main types of financial statement analysis: External Analysis and Internal Analysis.

External Analysis:
- External analysis involves the evaluation of a company's financial statements by external parties such as investors, creditors, analysts, and regulators. It focuses on the overall financial performance and position of the company.
- The key objective of external analysis is to assess the company's ability to generate profits, manage risks, and meet its financial obligations. It provides insights into the company's financial stability and growth potential.
- External analysis includes the examination of financial ratios, industry benchmarks, and comparisons with competitors. It helps in making investment decisions, determining creditworthiness, and evaluating the company's market value.

Internal Analysis:
- Internal analysis, on the other hand, is conducted by the company's management and internal stakeholders. It aims to evaluate the company's financial performance from an internal perspective.
- The main focus of internal analysis is to identify the company's strengths, weaknesses, opportunities, and threats. It helps in formulating strategies, improving financial performance, and achieving organizational goals.
- Internal analysis includes the assessment of financial statements using techniques such as horizontal analysis and vertical analysis. It helps in identifying trends, patterns, and changes in financial data over time.
- Horizontal analysis involves the comparison of financial data over multiple periods, such as year-on-year or quarter-on-quarter. It helps in understanding the company's growth rate, changes in revenues, expenses, and profitability.
- Vertical analysis, also known as common-size analysis, involves the comparison of financial data as a percentage of a base figure. It helps in understanding the composition of different financial statement items and their relative significance.

Conclusion:
In conclusion, financial statement analysis is categorized into external analysis and internal analysis. External analysis focuses on the overall financial performance and position of the company, while internal analysis evaluates the company's financial performance from an internal perspective. Both types of analysis are crucial for understanding the company's financial health and making informed decisions.