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Techniques of Financial Analysis
Assessment of Business Performance
The important questions to be answered are whether all resources were used effectively, whether the profitability of the business met or exceeded expectations, and whether the financing choices were made prudently.
Profit Margin
The relationship of reported net profit after taxes to sales indicates:
· Ability to recover cost of merchandise
· Expenses of operating the business
· The cost of borrowed funds
· Compensation to owners for putting capital at risk
Integration of Financial Performance Analysis
1. ... Place analysis in the context of comparable data about the industry
5.
Approximate Word count = 439 Approximate Pages = 1.8 (250 words per page double spaced)
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