FINANCIAL STUDY

Many times as a business owner you are looking for answers to some of these questions:

How have the company's assets been financed? Is the capital structure adequate? Will the company be able to pay its current liabilities? Will it be able to meet its long-term obligations? What has been its dividend policy? Has your equity grown proportional to the increase in the company's operations? To what extent has the business been affected by external economic, political or social factors? Among others... for that reason; It is important to know the answers and what better than those of a person who knows the subject such as a Financial manager.

You may be wondering what is a financial study?

It is defined as a process that includes the collection, interpretation, comparison and study of the financial statements and operational data of a business.

All the effort developed by financial management must tend towards an end, MAXIMIZE THE VALUE OF THE COMPANY that end corresponds; generally, for the purpose of shareholders, investors or owners, to increase their own wealth; that is, your investment.  

The Financial manager will be especially interested in knowing about your company: Its ability to pay short and long-term commitments, the profitability of its operations, the real value of its assets, the nature and characteristics of its obligations, the results of the analysis in response to these Questions are an invaluable tool for management to take action regarding the operation and success of the company.