How to Write a Financial Analysis Report of a Company

Source: newskillsacademy.co.uk

Many students choose finance or business spheres as their future professions. Both spheres are related to one another and allow for earning good money, fame, reputation, and recognition. Ambitious youngsters dream of being successful businessmen, marketers, or investors. To enjoy success, they have to learn a lot and write different academic papers. A financial analysis report is one of them.

Educators from business schools and colleges frequently assign students to analyze the finances of a concrete company. This task is pretty challenging and many students cannot withstand the pressure. Lauren Bradshaw, a professional essay writer, and blogger from CustomWritings.com, a writing services company, is ready to share her wits with students. “A financial analysis report of a company is always a serious challenge. Students ought to have great writing and mathematical skills. Their knowledge must be in-depth and precise if they want to meet success. That’s why students are supposed to regularly work out their skills and enrich their knowledge. They should be aware of the latest changes, trends, and demands to write high-quality reports”. Our informative guide will shed more light on this important issue.

Conduct In-Depth Research

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First of all, you should collect the data. It should be everything that belongs to the company you are going to study. Gather facts about its investments, salaries, and something of the kind. This sort of data is the main clue to your success. If you lack some facts, your report will be incomplete and worthless. For example, you’re obliged to calculate rates to understand whether the investments of the company pay off or are worth nothing. Therefore, make sure you conduct in-depth research.

Know the Main Sections

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Secondly, remember all the sections of a financial analysis report. Otherwise, you risk missing something important. For example, you may forget to check the balance sheet or assess risks. These are as follows:

  • Company overview;
  • Investment;
  • Valuation;
  • Risk analysis;
  • Details;
  • Summary.

Assess Risks

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Thirdly, conduct a risk assessment. It’s carried out to understand the financial potency of the company. You’re supposed to:

  • Identify general risks;
  • Document risks;
  • Monitor individuals;
  • Check controls, etc.

This analysis will show the big picture. You will be able to determine whether the studied company is worth investing in. Potential partners and clients always require this sort of information. If the risks are higher than possible revenue, such a company is a bad choice and your report will save the money of other people.

Predict Company’s Chances for Success

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After you gather and analyze the main financial properties of a company, you’ll be armed with the right information to draw correct conclusions. You should base the final assessment by using the profitability and risks of the studied company. Forecast financial statements to check credibility. Your forecast will tell readers about future perspectives and possible cash flows.

Academic Writing in Financial Analysis Reports

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We have highlighted the financial aspect of your analysis. You ought to gather financial data and use calculating skills to get the right numbers. However, it’s only one part of your project. The second part is devoted to academic writing.

Even if all your assumptions and calculations are correct, they will be of little value if you write with mistakes or make your report overly boring. We agree that financial analysis reports are barely interesting for readers when they know little about business and money. Nevertheless, your creativity can make them more readable and captivating.

The main objective of academic writing is to make any piece understandable and clear to readers. One of the most important tasks is to clarify all unknown terms and numbers to ordinary readers. Make sure you use simple language and provide clear examples.

Kindle the Desire to Read

Source: study365.co.uk

When a person sees finance reports or similar documents, he/she doesn’t commonly have a desire to read them. Your task is to ignite that desire. It can be done in several ways.

  1. Choose a relevant topic. You can attract the attention of potential readers with a good topic. It must be clear, informative, and straight to the point. As you should analyze a company’s financial state, you may pick the following topic – Precise Forecast of the Future for (Company) Using Accurate Finance Analysis.
  2. Write a grabbing introduction. Your introductory section is supposed to grab readers’ attention as well. It can be done in a variety of ways. Begin it with a shocking statement, an anecdote, rhetoric question, etc. An uncommon opening always kindles the desire to continue reading.
  3. Craft a strong thesis statement. The central idea of your report is a thesis statement. Commonly, it’s a single sentence that clearly delivers the main message of the entire project. It may be something like this – The future financial stability and possible investments of the company depend on the finance operations, which were made before and will be highlighted in this analysis report.
  4. Be precise and detailed. When you write the main plot of the report, make sure you use a formal tone. Use detailed and clear examples.

Keep in memory the tips and tricks we have provided in our informative article about how to  prepare a financial analysis research. They are universal and will definitely suit any type of company you should analyze and study. If you apply our recommendations correctly, you have high chances to enjoy success with your academic finance analysis writing.