6 Steps in Writing a Report Analysing the Financial Performance of a Company
Do you wonder how big companies that started their businesses decades back are still holding strong? It’s because they not only focus on getting higher profits each year, but they also stay honest with themselves, which they do by self-assessments. One of which is preparing a report that analyses the financial performance of a company.
Now, if you are an MBA student working on a business case study or willing to join an MNC soon, you must take a look into the idea of Generally accepted accounting principles (GAAP), as without knowing about GAAP, you won’t realise the standards of a financial report.
Further to guide you more, finance assignment help have listed down the steps that will help you write an ideal financial report for a company –
Assemble the data from the financial statements
First, you must gather information before you can start writing your financial analysis report.
So, look into the website for assembling financial records and other supporting documentation.
Here income statements, cash flow statements, and balance sheets are some examples of financial reports.
Additionally, you might want to gather any financial records, quarterly or annual reports, and government documents (if applicable).
Next, create ratios that provide a quick snapshot of the financial health of your company.
You may, for instance, figure up your company’s return on investment ratio and include it. In this manner, you may demonstrate to investors how profitable your investments are.
Find out which ratios are most important to your company. Your financial analysis report should include your calculations and ratios.
Perform a risk analysis
Here, you must analyse the threats of the company.
Investors are interested in whether your company is worth the risk.
So, conduct a risk assessment to demonstrate to investors that your company is worthy of investment.
The following steps can help you assess the risk facing your company:
- Identify the possible dangers
- Document those threats with a case study
- Documents people who are suspected of the risk
- Draft risk-reduction measures.
- Evaluate the hazards that take place often
Write about the company profile
This is the important step, where you report your financial analysis by giving a brief overview of your company.
Investors can better grasp the business, industry, and competitive advantage of the company by reading the company overview. Investors use these characteristics to decide if your company is a worthwhile investment or not.
Obtain these data from the quarterly or annual financial accounts of your organisation.
Highlight the Investments
The benefits and drawbacks of investing in the business are discussed in the investment section.
Examining the company’s cash flow, liquidity, and levels of corporate debt are all part of the investment analysis process. Additionally, future predictions for the information should be included in this section.
You must also give specifics regarding the financial statement analysis, growth trends, and competition comparisons of your business.
Think about incorporating additional information as well, such as turnover ratios, return on investment (ROI), and other financial elements.
It is better to acquire more knowledge. The possibility of future financial success can be determined by using historical financial trends in your analysis.
Add the Details
Include summaries of your financial statements and other papers in the details area.
Here, you must incorporate ratios, pie charts, and other graphs to illustrate how the claims should be interpreted.
Think about including a condensed version or summary of the following financial statements:
- Income declarations
- Sheets of accounts
- Cash flow projections
Also, note that the data you provide in the specifics section should corroborate the data you’ve already provided in your report.
Writing a report on the financial performance of a company is more of a work of patience and observation. That’s why you can’t overlook any minute details that the company showcases financially.
But, for starters, you can apply the steps above and prepare a well-researched financial report confidently.
Author Bio – Mia ryan is a business consultant based in Sydney. She is also associated with the academic brand MyAssignmenthelp.com where she is also an assignment expert. Mia also loves to play golf on weekends.