Abstract
Research background: Authors mentioned in the Research describe a financial analysis as first step of a financial planning process. It is an effective tool in the evaluation of a company’s financial efficiency on the basis of data from financial reports, where the individual data are sorted, aggregated and measured. The analysis usually consists liquidity, activity, profitability indicators and debt ratios. The result of the analysis should evaluate financial health and subsequently predict future of the focused company. Purpose of the article: The scope of this article is a practical application of financial analysis of the company. The main sources of information include financial statements balance sheet and income statement over the period of the last 3 years. Other sources are information obtained from employees of the company and information gained by studying a literature. Methods: The analysis process begins by identifying the main objectives and targets, continues by the methodical procedure, analysis of indicators and an interpretation of the analysis results. The main objective of the analysis is to evaluate the assets, the sources and the overall economic situation of the company. The key indicators that are the status and development of current and non-current assets, the status and development of equity and liabilities and a profit development. Findings & Value added: The financial analysis of a focused company was applied for the last 3-year time period. The worst status of the indicators occurred in the second year and after the subsequent intervention of the company management the result improved to sustainable status.
Highlights
Planning is a process involving the establishment of organizational objectives, the selection of appropriate means and ways to achieve them and the definition of expected results at a specified time and at the required level
Financial planning is a process involving the creation of a company's financial objectives and a summary of measures and activities to achieve them
Any financial decision-making must be supported with a financial analysis, the result of which forms the basis for management strategies of the company’s structure, investment and pricing policy, stock management, etc
Summary
Planning is a process involving the establishment of organizational objectives, the selection of appropriate means and ways to achieve them and the definition of expected results at a specified time and at the required level. Financial planning is a process involving the creation of a company's financial objectives and a summary of measures and activities to achieve them. It is an integral part of a business plan and an important financial management tool. The main problem to be solved in the company financing area is the relationship between company needs and financial resources In this context, the following long-term decision-making processes need to be approved: Total needed capital, corporate capital structure, corporate assets structure, possibilities of alternative investment of corporate capital [6]. As a criterion for the effectiveness of the process of ensuring the financial security of the company, sustainable development of the enterprise was determined in the conditions of an unstable economic environment [18].
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