Financial analysis Company
Each enterprise, whether smaller or larger, represents a complex
a system composed of different parts. These parts are logically self-inflicted
follow-up and there are links and relationships between them,
some of them are unambiguous, others at first glance can be
are not obvious.
Many entrepreneurs are able to calculate the operating profit or profit by switching, either alone or with the help of an accountant. However, few will think about the percentage of gross margin or the profitability of foreign capital in the event of a loan drawdown. However, does business make sense where the profitability of external resources is lower than the interest paid on them?
Cash is king, or after our cash is king. How many companies adhere to this phrase so often used? How many business plans does a cash flow plan contain? We see stories of companies going bankrupt despite millions of turnovers and hundreds of thousands of profits.
Could the reason be poor customer discipline? Receivables are assets, but not cash. You will not pay wages or stocks with receivables. Or is it the absence of planning? Without estimating cash flows, sales and expenses in the near and middle future, the risk of investing in new technologies, expansion, massive advertising is too high. Investors would certainly not want to hear that they have to rely only on your feelings.
If we compare a business to a living organism, then finance represents its blood circulation. Healthy blood circulation is essential for the proper functioning of the entire system. To monitor it, we use an analysis of the financial situation of the enterprise.
What is included in the comprehensive financial analysis of the enterprise?
- Horizontal and vertical analysis of the balance sheet and profit and loss account
- Capturing the dynamics of the development of selected balance sheet and profit and loss lines
- Compilation of basic financial indicators (liquidity, indebtedness, activity, profitability)
- Overview of financial funds (net working capital, net working capital, net
emergency funds, net monetary assets)
- Prediction of future business development (minimum 2 methods, Bonity Index, Altman's Z score, Quick Test, Index 05, Tamari Risk Index)
- Simplified estimate of the value of an enterprise (multiplication method
EBITDA and discounted cash flow method)
- The analysis is processed in the form of a clear management
report with detailed comments for each part of the
- The analysis contains clear data in the form of tables and graphs
- The analysis contains recommendations, an ongoing and final
After agreement, it is possible to compile a partial financial analysis of the selected corporate area with regard to the specific requirements of the client. Due to the complexity of the relationships, we recommend an overall financial analysis, since the compilation of partial analysis may be difficult to approach the overall (e.g . for the compilation of "only basic financial indicators", both financial statements need to be prepared in detail and financial funds and development dynamics need to be analysed for a correct interpretation).
In case of interest or need, it is possible to prepare other parts, such as analysis of the level of the transformation process, pyramidal decompositions of ROE, indicator EVA, MVA, etc. after agreement. In this case, the quote is individual according to the exact specification of the client.
Are you interested in finding out what is the current financial condition of your company?
Leave us in touch and we will be happy to contact you tentatively about a comprehensive or partial financial analysis.