Effective decision making requires reasonable basis of information and knowledge.
The company is unhappy with its earnings compared to its benchmark and competitors’ reports. It seeks to identify its weaknesses, strengths, and opportunities to find new ways to improve its financial performance.
About Financial Analysis
The financial performance metrics utilize information from the company, including income statements, balance sheets, and cash flow statements. These metrics offer measures that assist in evaluating the company’s current and past performance.
For financial analysis, it is crucial to review a company’s income statement, balance sheet, and statement of cash flows within their historical context. The results of these three financial statements should then be included in a detailed report that highlights the company’s key financial performance metrics over time.
Our approach
Studying the competitor’s activities at a strategic level to find out how they generate a threat to the company’s brand and service position is a part of the analysis process. Competition strength must be considered in the total marketing plan because competition is often the most significant barrier to growth. FOne has to understand how everything connects to everything else. When analyzing the company’s current and past strengths, four key areas generally should be examined:
- Management strengths to master and execute effective winning strategies
- Brand product and/or services growth potency
- Operating performances,
- Financial flexibilities and capabilities.
In this case, exploiting the annual report helps to understand the past and the future for two of these four factors: operating performances and financial flexibilities and capabilities.
Core modules and content:
- Financial statements simulation (Income Statement, Balance Sheet, and Statement of Cash-Flows)
- Financial and economic analysis and return on investment
- Uncover new opportunities and put weight on them by understanding their benefits and complexities
- Cash-flow and working capital opportunities
- Make up the financial statements for the next five years or ten years
- Develop the KPI’s package for senior management
Increase in operating performances
The finance department improved its work practices and started collaborating well with the departmental business units to gather detailed information, enabling them to design and develop accurate financial plans for the company. Moreover, a focus was put on implementing change plans in the areas considered the greatest opportunities for financial and business outcomes. The company managed to improve its financial performance by a two-digit number dramatically:
- Enhancing gross profits by concentrating on shelf pricing and packaging.
- Achieve double-digit EBITDA growth.
- Significant improvement in cash flow streams.