Analyzing Financial Statements and Key Performance Indicators
An often-overlooked tool for business owners, financial statements can act as a gauge to the financial health of your company for a specific period of time. Financial statements show an accurate portrait of your business' financial status in real-time. Financial statements include analysis, summaries and presentation of your company's current financial performance.
Forte can help you gain a better understanding of your financial statements.
To do this, we look at the nature of your earnings, cost behaviour and how you can use this information to benefit the health of your business. We begin with a review of your Balance Sheet and Income Statement.
Areas we review include:
- Asset Turnover
Includes days receivable, days inventory and days payable. This is the key measure of Balance Sheet efficiency as it indicates how quickly the business is turning over its operating assets.
- Income Statements
Percent-to-Sales, Balance Sheet, Current and Debt-to-Equity and Working Capital ratios
- Working Capital
The number of days it takes to go through a complete sales cycle and if the business is generating cash flow from each sale.
- Balance Sheet Growth
The change in the key items of the balance sheet over the last four periods.
A measure of earnings before interest and tax
Our goal is to help turn your numbers into knowledge. Analyzing the performance of your business will help you be better equipped to develop strategies for improvement and growth.
Our expert staff would be happy to help you get a clearer picture of where your company is, so you can make effective decisions about its future.