Company Analysis

Introduction to Company Analysis

Company analysis is a process carried out by investors to evaluate securities, collecting info related to the company’s profile, products and services as well as profitability. It is also referred as ‘fundamental analysis.’ A company analysis incorporates basic info about the company, like the mission statement and apparition and the goals and values. During the process of company analysis, an investor also considers the company’s history, focusing on events which have contributed in shaping the company.

A company analysis also looks at the goods and services offered by the company. If the company is involved in manufacturing activities, the analysis examines the products that the company produces and also analyzes the demand and quality of these products. Conversely, if it is a service company, the investor studies the services offered.

How to do a Company Analysis

It is essential for a company analysis to be comprehensive to obtain strategic insight. Being a thorough evaluation of an organization, the company analysis provides insight to rationalize processes and make revenue potentials better.

The process of conducting a company analysis involves the following steps:

• The primary step is to determine the type of analysis which would work best for your company.
• Research well about the methods for analysis. In order to perform a company analysis, it is important to understand the expected outcome for doing so. The analysis should provide answer about what is done right and wrong on the basis of a thorough evaluation. It is, therefore, important6 to make the right choice for the analysis methods.
• The next step involves implementing the selected method for conducting the financial analysis. It is important for the analysis to include internal and external factors affecting the business.
•  As a next step, all the major findings should be supported by use of statistics.
• The final step involves reviewing the results. The weaknesses are then attempted to be corrected. The company analysis is used in concluding issues and determining the possible solutions. The company analysis is conducted to provide a picture of the company at a specific time, thus providing the best way of enhancing a company, internally as well as externally.

Staff Responsible for Company Analysis

Company analysis is typically the responsibility of several different staff members, depending on the level of analysis being performed. These include:

1. Financial Analysts: These individuals are responsible for analyzing a company's financial statements and performance, including balance sheets, income statements, and cash flow statements. They use financial ratios and other tools to evaluate a company's liquidity, profitability, solvency, and efficiency.
2. Investment Analysts: These individuals are responsible for analyzing a company's stock performance and potential as an investment. They use financial ratios and other tools to evaluate a company's financial health and potential for growth.
3. Credit Analysts: These individuals are responsible for analyzing a company's creditworthiness and ability to repay loans. They use financial ratios, credit reports, and other tools to evaluate a company's solvency and ability to meet its financial obligations.
4. Market Analysts: These individuals are responsible for analyzing a company's performance and potential in the context of its industry and the overall market. They use financial ratios, market research, and other tools to evaluate a company's competitiveness and potential for growth.
5. Strategic Analysts: These individuals are responsible for analyzing a company's overall strategy and performance. They use financial ratios, market research, and other tools to evaluate a company's competitiveness and potential for growth, and make recommendations for improving the company's performance.

Overall,  company analysis can be an important tool for small businesses to understand their financial performance, identify areas for improvement, and make informed decisions about how to grow and succeed in their industry.