Why financial analysis & Modeling?
Businesses need tools that help them make smart & timely decisions. The financial reports like P&L, Balance Sheet, & Cash flow reports by themselves are limited in scope when it comes to providing deeper insights into the health of the business & thereby in supporting the decision making process. Unless one is well versed in reading the financial analysis & Modeling reports, the information provided by these reports may not be useful in drawing conclusions which are typically done based on KPIs of the business. This is where financial analysis & Modeling plays a key role, breaking down each element of financial statements by studying their interrelationship to arrive at the key ratios/indicators. These key parameters help the decision makers get an expanded view of the business situation by analyzing the profitability, liquidity, activity, solvency, operations & market standing of the business.
On the other hand, financial analysis & Modeling serves as a decision-making tool & answers the critical question concerning how the business is going to perform in the foreseeable future & provides the long term visibility into the business outlook.
We recognize the need of every business to look beyond mere numbers to gauge their performance & sustainability at a granular level. We have been providing the tools/dashboards that help these businesses to make informed & timely decisions like whether to continue with a particular product line, whether to proceed with a specific store, identifying areas of inefficiencies/wastages, identifying avoidable expenses or scope for reducing costs & thereby increasing profitability, etc.
Here are some of the financial analysis snapshots that we provide:
- Top 10 & bottom 10 stores (by GP & NP)
- Top 10 & bottom 10 selling products (Quantity & value)
- Top 10 & bottom 10 GP products (Quantity & value)
- MOM/QOQ//YOY /YTD P&L analysis (Company)
- MOM/QOQ//YOY P&L analysis (Store)
- Order size analysis
Areas of application of financial analysis & Modeling:
- Future forecasting through budgeting & forecasting
- Raising capital
- Business expansion, i.e. entering new markets or opening of new stores
- Mergers & acquisitions
- Capital budgeting & rationing
- Valuation of business