Financial Analysis / understand your numbers
Most businesses produce annual and monthly financial statements and comply with record-keeping requirements, yet financial
statement analysis is often overlooked or not performed on a systematic and timely basis so as to
obtain insight into the financial performance of the business. Other businesses seek to interpret and assess their
financial statements yet lack the tools to do so. To assist decision makers, analysis-one provides a structured
framework of financial analysis tools to analyse financial statements and deliver actionable insight from the business intelligence
contained within.
Financial ratio analysis is employed for Income Statement Analysis and Balance Sheet
Analysis and is incorporated in the Financial Scorecard Tool, to provide a unique picture
of a company's financial position. Key financial ratios measured by analysis-one represent standard performance measures
used by the accounting profession on a daily basis, and seek to analyze the income statement and balance sheet from a variety
of financial performance perspectives, which include - Profitability, Liquidity, Efficiency, Asset Usage and Gearing.
Financial analysis tools within analysis-one, include: Financial Scorecards, Financial Ratio Analysis, Breakeven Analysis,
Cash Flow Analysis, Trend Analysis, Forecasting, Variance Analysis and Sensitivity Analysis.
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The financial ratio analysis tool includes supporting financial analysis explanations, which assist management who haven't
been schooled in accounting to understand the critical numbers driving their business.
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The financial scorecard tool assists to monitor performance against specified targets. Each performance metric may be assigned
a target value and a weighting, which indicate the importance of the metric. Custom targets may be set to reflect forecast
performance or set to reflect industry best practices.
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Scorecards assist to visually identify areas of concern and provide an interpretive overview of the financial health of
a business. These unique visualisations also provide a useful method to communicate performance to all stakeholders.
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