What is a common financial analysis tool used by businesses?

The correct choice, SWOT Analysis, is a common financial analysis tool because it allows businesses to evaluate their internal strengths and weaknesses as well as external opportunities and threats. This holistic view is essential for financial planning, as it helps organizations identify what they do well, where they may be lacking, potential growth areas, and the challenges they face in the market.

SWOT Analysis is particularly valuable in the financial context as it not only focuses on quantitative data but also incorporates qualitative elements that can influence financial performance. For instance, recognizing strengths can lead to more efficient resource allocation, while understanding weaknesses can prompt strategic changes that impact financial health.

In comparison, the other options serve distinct purposes: PEST Analysis focuses on external factors like political, economic, social, and technological trends but does not provide internal insights. Porter's Five Forces analyzes competitive forces within an industry but does not directly assess a company's internal capabilities or weaknesses. The Balanced Scorecard is a strategic planning tool that integrates financial and non-financial performance measures to provide a more comprehensive view of organizational success but is not as commonly used solely for financial analysis.

Thus, SWOT Analysis stands out as a versatile tool that directly supports financial decision-making and strategic planning.