Financial Analysis

Financial Analysis is the assessment of the effectiveness with which funds are deployed, and efficiency and profitability of such operations.  Financial analysis helps in retrieving valuable information from financial statements.  Our Analysts study the financial statements to understand how much of the expenses were incurred for the given amount of revenues, how much was invested in capital assets out of the investment brought in, what was the gestation period or turnover period, what was the EBITDA, the EBIT, the net profit, the IRR, the ROI etc.  These analysis help in ascertaining which expenses can be curbed to increase net profit, how much should be the loan amount be so that the interest charges do not hurt the bottom line, how much capital needs to be brought and in which year, and what measures need to be taken to improve the bottom line and the ratios.  It also helps in designing the accounts receivable policies, managing inventory, and managing the working capital.  We provide financial analysis to small and mid-sized enterprises as well.

Other than analyzing the Profit & Loss Statement, Cash Flow, and Balance Sheet, out team of Analysts look into  various calculations done for depreciation, interest, tax, salaries, and other expenses etc.  As part of financial analysis, we take up ratio analysis including Payback Period, IRR, Discounted NPV, Net Profit Margin, EBITDA Margin, and ROI.