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 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 analytics 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 model 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 analytics 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 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