Strategic Financial Analysis Approach

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STRATEGIC FINANCIAL ANALYSIS Strategic Financial Analysis can be described as a discreet approach, instigated by interested financial contingents including investors, creditors, and boards of management to appraise the past, current, and proposed state of affairs and performance of the organization thus, providing a comparative measures to weigh up account trend, organizations state of affairs and performance over the years and to disclose the internal structure of the organization (Riyad M.,2013). In addition, Kieso, et al., (2007), Moyer, McGuigan, Rao and Kretlow (2011) all discussed Strategic financial analysis as a common phenomenon used in in-depth evaluation, review of the organization's viability, consistency, profitability and comparison…show more content…
Besides, it is a critical tactic in evaluating the company’s economic prospects and risks and also to protect investment considering the fact that its propels investors to craft and implement productive decisions and plans such as investing in equity or debt securities, extending credit through short or long term loans, valuing a business in an initial public offering (IPO), and evaluating restructurings including mergers, acquisitions, and divestitures, all drawn up with respect to the development and sustainability of the firm's operations towards hitting the market waves aimed at detailing colossal profits. Furthermore, Financial analysis determine the level of business operations, continuity or incoherence of the business; level of manufacturing product acquisition, extent of service expansion, purchase or rent/lease of production machinery and equipment, and the issuance of stocks, negotiation for bank loan and investment of capital; thus allowing the management to decide and implement alternatives to enhance business operations. Conclusively, the core rationale of financial statement analysis is…show more content…
However, in a bid to ensure effective and up-to-date evaluation of the companies performance, stability, liquidity solvency, profitability and also to paint a picture to aid better understanding of the companies financial concepts, position and performance, financial statistics and data were collected from the companies published reports, financial statements, credit and investment advisory services. Also, a comprehensive analysis of the organization's overall performance was identified using a combination of profitability ratio, liquidity ratio, performance efficiency ratio, Debt and debt leverage ratio and service marketability

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