Financial analysis

What is Financial Analysis?

The financial and economic analysis is a service that provides a comprehensive assessment of a company’s financial statements and ratios, offering relevant insights into its performance over time. When constructing financial projections, a significant part of this process involves applying assumptions regarding revenues and costs that help assess the company’s economic potential and refine its decision-making process.

How Can a Financial Analysis Benefit Your Business?

By analysing key metrics, such as profit margins and liquidity ratios, JEME helps businesses identify the factors that influence their profitability and financial stability. For instance, improving the cost and revenue structure can help maximise the company’s economic performance, while improving liquidity ratios can enhance its financial efficiency and minimise the risk of insolvency and liquidity shortages.

In addition, creating financial projections helps cash flow management by defining initial investments and estimating future costs and revenue. This ensures that companies, in particular SMEs, are well-prepared to meet their financial obligations throughout the project’s lifecycle.

Thorough financial planning & analysis are vital for younger companies, such as startups, looking to enhance their performance and attract investors.  

JEME’s Financial Analysis Services

JEME provides comprehensive financial planning & analysis services that include:

• Economic Balance Sheet Analysis which outlines the current financial situation and forecasts future performance based on balance sheet data. By identifying break-even points, clients obtain help to understand the turnover volumes necessary to cover costs and achieve profitability.
• Business Financial Analysis which includes a study of financial statements and forecasts of the company, containing all financial analysis indices. Usually done as part of a business plan, it offers a strategic perspective on a company’s profitability potential.