Loan Decision by Financial Institutions and Banks: Financial analysis helps the financial institutions, loan agencies & banks to decide whether a loan can be given to the company or not. Users who subscribe to the RMA option can integrate with Financial Analysis CS, which then lets them provide aggregated financial indicators of peers or industry standards, showing clients how … 1. To evaluate the financial condition and performance of a company the financial analyst needs certain yardsticks. 1. This is the step where financial professionals can really add value in the evaluation of the firm and its financial statements. Financial health is one of the best indicators of your business's potential for long-term growth. Managing the working capital 2. When comparing changes in the ADVERTISEMENTS: In this article we will discuss about the three important tools of financial analysis. That’s why it’s important to have the best financial analysis software in place. 4. The yardstick frequently used is a ratio, or index relating two pieces of financial data to each other. Comparative Statements: These are the statements showing the profitability and financial position of a firm for different periods of time in a comparative form to give an idea about the position of two or more periods. It can also be used for valuing a company’s equity securities, assessing its financial risk exposures, and performing necessary due diligence ahead of a prospective merger or acquisition. Set your small business up for success by using one of these top financial analysis tools. 2 Responsibilities of the Financial Manager 1. PERFORMANCE ANALYSIS (Tools for Financial Analysis and Control). The Federal Reserve Bank of Chicago's recent Small Business Financial Health Analysis indicates business owners knowledgeable about business finance tend to have companies with greater revenues and profits, more employees and generally more success. Financial Analysis CS reviews and compares a client’s financial position with business peers or industry standards. Financial Analysis is defined as being the process of identifying financial strength and weakness of a business by establishing relationship between the … ... Financial Analysis CS reviews and compares a client’s financial position with business peers or industry standards. CFI is the official provider of the Financial Modeling and Valuation Analyst (FMVA) FMVA® Certification Join 350,600+ students who work for companies like Amazon, J.P. Morgan, and Ferrari certification, designed to transform anyone into a world-class analyst. Use graphs and charts in the financial analysis section to illustrate the financial data, just as you should in other sections of your business plan that include extensive data, numbers, statistics, and trends. Comparative Financial Statement Analysis (Horizontal Analysis): As the name suggests, comparative analysis provides a year-on-year review of the various