Financial statements being largely historic means they are most useful for evaluating:

Financial statements, such as income statements, balance sheets, and cash flow statements, are primarily designed to reflect the financial position and performance of an organization over a specific past period. Because these documents compile historical data, they provide insights into how the organization has operated, its profitability, its asset management, and its overall financial health during that timeframe.

Evaluating past performance is essential for stakeholders, including management, investors, and creditors, as it offers valuable insights into the effectiveness of past strategies and decisions. Examining historical trends allows these stakeholders to assess the consistency and reliability of revenue generation, expense management, and cash flow, which can inform future decisions and strategies.

While financial statements can provide some context for current liquidity and may hint at future trends through historical patterns, their design and purpose focus primarily on depicting what has already occurred. This characteristic underscores the fundamental value of financial statements in assessing an organization's past performance, drawing lessons, and planning accordingly.