Financial Analysis

 

As a business, finance, marketing, or accounting major, you’ve done lots of financial analysis assignments. They’re may not be the hardest assignments you’ll do. However, they can be challenging. You should take these tasks seriously. Why? You’ll need the knowledge down the road. Businesses that don’t know their numbers are at risk of sudden collapse. Such businesses keep going belly up, with terrible consequences. Having problems with your financial analysis assignment? Don’t worry. Ask for help. There’s no shame. Even the Einsteins of this world need a little help sometimes.

 

For Companies, It’s all about Financial Analysis

An entrepreneur who can’t read financial statements is heading to a financial trouble. Such people’s competitors keep eating away at their market share. Not every business owner studied business or accounting. They’ll always need graduates like you. So, work hard. Graduate. Get a job. You’ll future employer’s waiting for you to help with analyzing their financial statements.

The income statement. Statements of financial position (balance sheet). Statement of changes in equity. Cash flow statement. All these statements reveal critical information about a business’ performance. Consider the cash flow statement, for instance.  It helps a business know how much money it is generating. It also helps businesses to understand how much cash they must raise and when.

The cash flow statement is often a better indicator of an entity’s performance than the income statement. An income statement could show that a firm is making sufficient profits. However, the business could be having too much debtors. And that’d mean the business doesn’t have sufficient cash. The cash flow statement indicates a company’s ability to pay for expenses, invest, or acquire assets.

Soon, you’ll be the guy looking over all these statements, providing your employer with accurate advice. Take your financial analysis assignments seriously.

 

Financial Analysis Can be Challenging

 

That’s why businesses hire accountants. That’s why they consult CFAs. These professionals know how to read and interpret financial statements. They can look at a statement and quickly understand whether a business is surviving or thriving. Such people crunch numbers and see “truths” most wouldn’t see unless someone explained it to them.

Business school prepares you for the challenging work that awaits you. You must understand all the ratios and terminology. You must master the language of business. But knowing how to read financial statements isn’t enough. You should be able to generate such statements yourself. Need help with your financial analysis assignment? Look no further; talk to us.

 

Financial Analysis: Ratios and Calculations

 

Calculations form a major part of your assignments. There are countless ratios to calculate and many formulas to learn and use. Here are some them:

 

Ratios and Formulas Related to the Income Statement

 

The income statement is vitally important. You must learn to prepare and interpret this critical statement. The income statement tracks a company’s performance over a time period. It measures a business’ profitability.

Some people like to call this statement other names. These are the names: profit and loss statement, the statement of earnings, or the statement of operations. Financial analysts look at the income statement to estimate a business’ future performance. The income statement also helps analysts to determine the strength of future cash flow.

There are different ratios to calculate when analyzing the income statement. These rations include the gross profit margin, net profit margin, and operating profit margin. You must also understand how to calculate revenue growth, revenue per employee, and revenue concentration. These ratios are quite simple to work out. However, it’s easy to make mistakes.

 

Ratios Related to the Statement of Financial Position (Balance Sheet)

 

When analyzing the statement of financial position, you must know all the relevant ratios. You must understand efficiency, leverage, and liquidity ratios. Most importantly, you must fully grasp the accounting equation. We’re sure you’re familiar with the accounting equation: Assets = (Liabilities + Equity). The three types of ratios we’ve mentioned here are broad categories. For example, leverage ratios comprise debt to equity, debt to capital, debt to EBITDA, interest coverage, and fixed charge coverage.

 

The Cash Flow Statement: Related Ratios

 

The cash flow statement has got to be the most critical statement you’ll ever analyze. The statement shows how a business is generating cash and spending it. It allows management to see how changes in the income statement and balance sheet affect cash flow. It’s a reliable measure of a business’ current liquidity and solvency.

The cash flow statement tells you how easily a particular business pays short-term obligations. The cash flow statement comprises three main components. These are cash from operations, cash from financing, and cash from investing activities.

Operating cash flow to net sales and free cash flow are two of the most critical ratios you should learn.

No ratio mentioned is hard to understand. However, you might not quickly grasp all of them. Do you need help?

 

Need Help with Your Financial Analysis Assignment?

 

We’ve not dived deep into the ratios because we assumed you know them. But assumptions are just assumptions. We could be wrong.

Some of the smartest financial analysts around work with us. They’re whom you should consult when you get stuck. No matter how confusing or difficult your assignment, our analysts can help.

What separates our finance and accounting writers from the rest is that they’re practicing accountants and financial analysts. They’re extremely busy people, but they still create time to mentor others. You can get assistance anytime.

We work 24/7. Don’t allow that small voice called doubt or hesitation to hold you back. Step forward and give your financial analysis skills a chance

Need Help with Your Financial Analysis Assignment?

 

We’ve not dived deep into the ratios because we assumed you know them. But assumptions are just assumptions. We could be wrong.

Some of the smartest financial analysts around work with us. They’re whom you should consult when you get stuck. No matter how confusing or difficult your assignment, our analysts can help.

What separates our finance and accounting writers from the rest is that they’re practicing accountants and financial analysts. They’re extremely busy people, but they still create time to mentor others. You can get assistance anytime. We work 24/7. Don’t allow that small voice called doubt or hesitation to hold you back. Step forward and give your financial analysis skills a chance.

 

Need Help?

 

Need help generating a cash flow statement, income statement, or balance sheet? Maybe you require assistance with analyzing different financial statements? Whether they’re a single entity or group accounts, our financial experts can help. They’re excellent teachers who never quit on you until you fully understand the concept or ratio in question. Our prices are great. You can expect top-notch samples that have you mastering the most complex calculations real quick. Don’t wait; contact us NOW.