to explore what else is required to have the information, which will carry out the necessary calculations, and formulated certain conclusions.Naturally, this also applies to the conduct of financial diagnostics company.In this aspect, the most important source of information, as you've probably guessed, is the financial statements of the company.It consists of a number of forms which provide different data characterizing the company's financial situation.Now I would like to dwell on the fact that you can "extract" from the statement of income.
specified reporting form, as can be seen from the name, it characterizes the company in terms of the final financial result - profit.Tellingly, this figure can not be called fully objective and unambiguous.This is evidenced by the fact that only in this report can be found as many as four different earnings, namely earnings from sales, gross profit and earnings before taxes and free of taxes, that is clear.But not all of these indicators are properly called profit.Gross margin is much more correct to call the margin, as deducted from the income, not all costs.
very structure of the considered forms of accountability makes it very easy to determine the course of identifying the financial results of the company operation.Consider, for example, how to calculate profit from sales.A simple glance at the report is enough to understand that you need the following simple calculation: proceeds from the sale shall first be reduced by the cost of the product, then it should be clear from the commercial and administrative expenses.In a similar way, you can calculate and tax and net profit.Of course, it is necessary to take into account a greater number of indicators that are shown in the report below.
Very important is the fact that this report provides a huge scope for analysis.The simplest methods are the vertical and horizontal analysis.The essence of the first is the study of structure by determining the relative weights.The basis of comparison is usually revenue.Conducting this analysis allows, for example, to determine what, what proportion of the revenue is from the sale of profit.
In the horizontal analysis takes the study of dynamics of indicators over time.Use the information for several periods, calculated the absolute and relative changes in the indices.Carrying out this type of analysis helps to identify trends in financial results, as well as the factors affecting it.
last type of analysis in which we dwell, will be a factor analysis.Study this manner is usually subjected to profit from the sale, as well as net profit.In this case, carry out a factor analysis is fairly easy, as factors whose influence should be evaluated, have been identified and presented in the report.However, one should pay attention to the fact that revenue is influenced by the price and volume of sales.These factors are so important that their impact should be taken into account and analyzed separately.
After calculating the earnings and the necessary analytical procedures should be required to draw conclusions.They must be of a recommendation to increase profits in any way, whether it is revenue growth, cost reduction, or anything else.However, it will likely be necessary to investigate the performance of other companies using various sources of information that have been the most effective solutions.
