Need urgent help with a term paper?
We write 24/7! No plagiarism. Any difficulty, any specs, any deadline! Confidentiality guaranteed!
   + 1-888-722-7601      + 1-302-351-4405  

Financial Analysis - Measuring Your Company’s Health

In business, one of the main measurements management must have is financial data. The interpretation of this financial data is call financial analysis. In financial analysis, the viability, sustainability and profitability of a business or project is assessed and recommendations drawn.

The Effects of Financial Analysis

Many business decisions are based on the results of financial assessments and analysis. Top level management depend on financial assessments to make decisions such as:

  • Continuation of a business venture or project
  • Purchase of materials and equipment
  • Issuance of stock or debt instruments
  • Acquiring investment properties or lending capital
  • Entry into new business ventures or release of new products and services

Sources of Financial Analysis

Sources of data for financial analysis come from either existing financial data contained in sales journals, balance sheets and profit statements or from financial projections of anticipated future performance. Often this data is compared to previous performance or to the performance of other companies within the same industry to establish comparative analysis.

The Financial Analysis Process

Once the data is obtained, it must be analyzed for relevancy, application and significance. Relevancy is the relation between the information being sought and the data obtained. Application is how the data is used to derive projections and comparisons. Significance measured how important the data obtained is. The fact that a product lost 30% of its sales over the prior six months may be irrelevant if the product is considered a seasonal item, however, a drop of 30% to a fast food restaurant in the same time span may be dramatically significant.

To analyze financial data, there are many formulas used to find various ratios: inventory to sales, debt to equity, liquid assets to debt, etc. Comparison of the company’s ratios to other within the industry allows management to determine the company’s competitiveness.

Other formulas, such as breakeven charts, can determine the potential of a proposed venture or product by taking into account the base costs of start-up or product development and the cost per unit produced and/or sold.

The Significance of Financial Analysis

The role of financial analysis in today’s business environment is well established. Company executives depend on accurate, timely analysis of business operations in order to make sound, timely decisions and to plan for the future of their company.

Writers, like those employed by our company, specialize in analysis of every nature, including financial, and in the translation of that analysis into sound, effective reports. This allows busy executives to focus on the day-to-day operations of their company, rather than spend days (or even weeks) scanning financial records and attempting to understand their significance.

Our writers utilize state of the art techniques and software to produce high-quality, meaningful reports for our clients. As such, our company has earned one of the highest reputations in our industry and stands ready to prove its worthiness of that reputation. Contact us today and learn how we can make your career easier by assisting you with the preparation of reports and articles of every imaginable type.

Price Quote


Deadline:
 @  : 
US Central Time (GMT -06:00)
Project type:
Academic level:
Number of pages:
100% Satisfaction Guarantee

We will revise your paper until you are completely satisfied. Moreover, you are free to request a different writer to rewrite your paper entirely, should you be unhappy with the writing style, level of research, communication, etc.

100% Authentic Research & Writing Guarantee

We guarantee that you will receive a fully authentic, 100% non-plagiarized work. Otherwise, we will just give you your money back.

100% Confidentiality & Privacy Guarantee

No one will ever find out that you have used our service. We guarantee that your personal information as well as any other data related to your order(s) will remain confidential to the extent allowed by law. It will not be shared with any third party unless you provide a written consent.