9 Free Sample Financial Analysis Sheet Templates

Download these 9 Free Sample Financial Analysis Sheet Templates to assist you. Before investing in a new company or taking a joint venture opportunity with another business. Most of the business owners first evaluate the health and financial stability of the other partner. If you were asked to invest in a company. You have the right to evaluate and examine how the company is doing. And if it’s a safe place to invest your money or not.

For this reason, companies and organizations hire professional analysts to evaluate the financial situation of the company. They prepare final Financial Analysis report for your review. This report shows the results about the past, present and expected future value of the company. It also includes the annual turnover of the company, profit and loss statements. Moreover it also states financial value of the company in the market and potential risks associated with the business.

Key Guidelines for conducting Financial Analysis:

In order to evaluate the financial situation of a company, only present situation of the company is not enough. You have to take a look at the past of the company as well. For this reason, it is important to analyze the financial statements of the company that go up to 3-5 years back in the past. This is a great way of seeing how the organization did a few years ago and what kind of crisis it dealt with at that time.

While you are looking at the past financial records of the company, the important thing is to look for sudden changes or unusual movements or transactions that are flagged as red. This includes any sudden changes in the revenue, profit and loss statements and annual turnover of the company. Whether the company went through a huge loss at a point or the sales just went up through the roof during a specific period of time, you should note these changes.

Evaluating the balance sheets of the company is also a very important part of the overall financial analysis process. Performing this will make it easier for you to evaluate the overall health and financial situation of the company i.e. liabilities, equities and debts that the company currently holds.

Tips for Conduction Financial Analysis

Evaluating the annual and quarterly income of the company is also very important. It doesn’t matter what the company sells or offers to the clients and customers but the important thing is how much profit it is making per year and what quarter of the year has the highest income. By looking at the sales and income figures from 2-3 years in the past will help you to understand the policies and strategies that resulted in higher or lower income.

The most important part of the Financial Analysis process of a company is to evaluate the market value of the company and its shares. You can either do it by researching in the market and knowing the reputation of the company and comparing it with the value and reputation of its competitors or another more efficient way is to evaluate the shares and stocks. Here you will need to know about the number of stocks and shares that the company has sold in the market and shares that it has bought back from the stock market.