Review of the financial position of a company isn’t just a simple introspection of the financial
results of the company. It’s very important to revise the company as a whole unit, find certain
principles, determine relations between balance sheets records, connect them all together
and eventually make the overall financial analysis of the company.
Why the financial analysis of the company is important?
- Is the company profitable enough? If it is today, will it be tomorrow?
- Is the company liquid, and whether it can properly settle its obligations?
- Whether the company has sufficient working capital, and whether the structure of working
capital is adequate?
- Is the company controlling costs well? Are revenues adequately represented? What types of
financial risks are in front of the company?
- What is the real value of the company and whether additional investments will pay off?
An answer to all these questions can offer you our product called “Financial analysis“.
Financial analysis can include the following segments:
- Analysis of assets structure
- Analysis of liabilities structure
- Analysis of capital structure
- Analysis of revenues
- Costs analysis with cost controlling
- Analysis of profitability and its lower point
- Ratio analysis
- Z score analysis, ACID tests, CAMEL methodology, due diligence.