Financial analysis

Financial analysis is one of the best ways to find out whether or not a company is heading in the right direction, yet, the accumulated information must be correctly and objectively assessed.

Our company provides the services of financial analysis. Having analyzed the results of your company, we will provide the following:

  • Our conclusions on financial stability of the company, efficiency of resource use and possibilities of its optimization;
  • Conclusions on internal and external factors influencing the operation results in a negative way;
  • Prepare estimated cash flows and create an effective system of their control;
  • Formulate a system of financial and economic ratios which will in turn allow evaluating the effectiveness and reasonability of the made decisions.

When analyzing the operations of the company, we prepare retrospective and preliminary analyses. The retrospective analysis is focused on the results of past periods. It is used when determining and assessing the efficiency of resource use and operations, validity of assumptions and forecasts and tangibility.

The preliminary analysis is targeted at finding out how plans and specific tasks are implemented within a short period of time, i.e. a well or a month. The goal of this report is to quickly determine any deviations from the business plan and their underlying causes and to estimate actions and measures for the improvement of the situation on time.

We also prepare horizontal, vertical and relative analyses.

During the horizontal analysis, the financial report data are compared with the data of the past periods and estimated figures. A disadvantage of this type of analysis is that it does not determine the reasons of changes in ratios. This question can be answered by a vertical analysis. It depicts the structure of the analyzed parameter, i.e. the ratio of each report is compared with the basic ratio. The relative analysis, also known as the system of financial and economic ratios, is prepared on the basis of the data from the horizontal and vertical analyses. This system allows easy comparison of the results of different economic activities of the company, revelation of reserves and submission of rational company management decisions.