How to Write a Financial Analysis Report




Financial Analysis Report (This article refers primarily to internal management reporting) is a business situation, summarize the operation of funds and high reflection. However, to write a high-quality financial analysis is not easy. In my opinion, the financial report writing the following six are noteworthy:



     1, must clearly be understood to know the object to read the report (internal management reporting of reading was mainly targeted at corporate executives, especially the leadership) and the report contains an analysis range. Read the report at different targets, the report writing should vary. For example, the leadership provided to the Finance Department can be specialized for some, but made available to other sectors, especially the leadership of the profession rather alien to the report of the leadership will have to seek popular number; to the different levels of reading while providing an analysis of the object, then requested an analysis of staff in writing When a good report accurately the framework of the structure and levels of analysis, in order to meet the needs of different readers. Again, the report analyzes the scope of a particular department or if the two companies, the analysis of content can be a little small, specific number; and analysis of the object if the whole group, then the analysis should strive to refine the text can not be exhaustive of all the issues, centralized grasp of a few key issues can be analyzed.




     Second, to understand the information needs of readers to fully comprehend the information they need the leadership is.
I remember a meeting with business leaders to communicate, he spoke with deep feeling: you give me the financial analysis report, the contents of many well-written is also very long, it should be said that a lot of efforts to. Unfortunately, I do not need too much information, and I really want to get the information too little. Every month we worked so hard to do out of the analysis was to have for the business services, it may in fact do? Where the problem? I believe that the written financial analysis reports on the premise that financial analysts to be as much as possible to communicate more with the leadership to capture their "really understand the information."



     3, the report pre-writing, there must be a clear framework and analysis of ideas.
The framework of financial analysis reports, as follows: Report of Contents - Important Tips - Report Summary - a detailed analysis - overview of key issues and the corresponding improvement measures.




     "Report List" tells the reader of this report analyzed the content and where the page number;




     "Important" is mainly directed against the current report in the new content or need to be made in advance of major concern to show that the leadership intended to cause a high degree of attention;



     "Executive Summary" is a highly concentrated current content of the report must be concise and clear and go beyond that.




     Whether it is "Important" or "summary of the report," should be marked with specific analysis is located in the following page, to lead the timely access to appropriate analytical content. The above three parts are necessary, its purpose is to enable leaders in the shortest possible time to gain a holistic understanding of the report, as well as the current report will inform the major issues.




     "The problem focus on synthesis and the corresponding improvement measures" on the one hand is a problem in the last issue reports to track the implementation of the report, while the current report "detailed analysis" section reveals the key issues to focus on the designed to focus on the analysis of scattered technology, once again left a deep impression on the leaders.




     "Concrete analysis" part of the report contains an analysis of the core content.
"Detailed analysis" section of the writing how the critical decision to the analysis of this report the quality and grade. To make this part of the written very exciting, first and foremost is to have a good line of analysis. For example: A group consists of four two companies, and are for the manufacturing companies. The analysis of financial reporting idea is: the overall index analysis - Analysis of Group Headquarters - the two company's situation analysis; in each section, according to analysis of this month - year cumulative analysis started; further down by profitability analysis - sales Analysis - Analysis of cost control started. So down to every level interlocking, between the various parts and each part of the house there a close relationship between the articulation.




     4, financial analysis must be closely integrated with the company's operations, a deep understanding of financial data behind the business background, effectively reveal the course of business problems. Finance staff to analyze the report, the lack of understanding of business, often behind closed doors, and thus fall into the passive data on data on the situation, get out of the analysis of the conclusions they often are really ridiculous. Therefore, it is necessary to emphasize the point: a variety of financial data is not only in the usual sense of a simple patchwork and aggregation numbers. Behind every financial data are blending a very lively show increases and decreases in costs were incurred, debt repayment and so on. Financial analysts through understanding and a clear grasp of the business, and have the right professional to determine the sensitivity of financial data, you can judge the reasonableness of economic business place, compliance, analysis of the resulting written report will be able to truly business to provide useful information for decision making. After all, only an intermediary financial data (is all sorts of business to reflect the true, or so-called business mapping), thereby targeting the financial data analysis on data on the data, the report of the important quality characteristics of "relevance" frustrated, for decision-making "useful" of nature is difficult to talk about. Reposted elsewhere in the paper for free download http://eng.hi138.com






     5, financial analysis reports an analysis of methods.
How can I live to make the report and has its own characteristics? Here I report only describes the process of writing a few of Wu:



     1. Analysis of Variance to be followed - Analysis - the principle of the proposed measures. Writing the report because the fundamental purpose of financial analysis is not only stay in the problem, reveals the problem, but rather through an in-depth analysis, propose reasonable and workable solution, the real take on "financial counseling" in an important role. The most important matter, the report's usefulness or component is possible to improve and sublimation.




     2. For the analysis of specific issues and the importance of the principle of using the intersection of the principle of co-existence practices reveal anomalies. For example, a company has 36 overseas institutions, overseas institutions for the analysis of a certain month of cost control and efficiency, we have to "travel per capita" as the evaluation of one of the indicators. In the analysis, we have adopted a comparative analysis (comparison with the previous month this month) from the increase in the amount of (absolute), growth rate (relative number) compared to reveal the cost of both anomalies and inefficiencies in institutions abroad, and we were on the cost of growth of the top ten (defined as a collection of A) and the growth rate of the top ten (defined as a collection of B), ranked institutions stationed abroad, and define the set C = A ∩ B, then the collection C in the missions abroad will be the focus of our analysis of one of the target, which is "the intersection of principle." However, the intersection principle and there will be able to reveal the full cost of abnormal institutions abroad, for "important principle" seems indispensable. Intersection in the application of principles, have in mind the importance of the principle of consciousness; the importance of principles in the application of the same set of rare flash of thought. In short, financial analysts should always "focuses on major issues, the main problem," embodied in the dialectic on the basis of the focus on two points.




     3. Problems center point method can also be known as the focus of mapping method. This analysis approach is mainly based on the following idea: in various parts of the analysis, we operate from different perspectives on the problems existing in the process of fragmentation analysis. These issues point like a mapping table on the left is a different analytical point of view, there are problems with the right departments can cost items. An analytical point of view may be mapped for each department or an expense item, it may be a number of departments or cost items. Because specific to the various parts of the analysis points out the problem is not the system, thus leaving the impression that the leaders more scattered, focusing on the problem is not prominent; and leadership through the monthly analysis report, aimed at solving some of the questions focused on the head to achieve a. Guer financial analysts on the one hand a specific analysis, there must be consciously aware of the focus of this month, there may be problems (in the data when finishing the sensitivity of financial data with financial analysts this month, there may be able to feel the major anomalies), On the other hand should be good at from the previous analysis of scattered focus on selected issues 1-2



     6, the analysis should pay attention to other problems.




     1. For the company to company policy, especially the recent major guidelines and policies have an accurate grasp of the spirit of the thoroughly understand the company policy under the premise of the analysis should also focus on the current as much as possible, aiming at the future, to enable the analysis to play a "navigation device "effect;



     2. Finance staff in peacetime work that should be a little more understanding of the country's macroeconomic environment, particularly to capture as much as possible to collect information on competitors in the same industry. Because the company had to face in a complex market, in this large market, any changes in the macroeconomic environment or industry competitors, the change in policy will be more or less impact on the competitiveness of the company even decided the company's fate;



     3. Do not think of the conclusions of light. Financial analysts in the report all the concluding words of the report to read the impact of the considerable, if the financial personnel in the rush to the conclusion in the analysis, it is likely to form misleading. Such as the current number of companies in the country accounting for less than specifications, the cost of reimbursement of actual period with a view is often inconsistent, if the financial analysts do not understand the accounting of the time lag difference, it is very easy to draw the wrong conclusions;



     4.
Analysis of the wording should be as smooth, fluent, concise, concise, avoiding colloquial, long-based. Chunhua Qiushi, Inf. Health has to do, industry, infinite ground is priceless, hard for the world.


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