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10 Steps to Write a Financial Analysis Report



Creating a financial analysis report is an easy task, but it is not everyone that can do the job. If this is your first time writing a financial analysis report, you will need to have a thorough knowledge of the commercial accounts and operations of your company. It is important to note that there are other expenses that your company will incur that you must also pay attention to. If you need professional writing help to create yours, it would be great to hire a competent online paper writing service. 

For instance, if you want to know how your company has performed over the year, you need to utilize the year-end financial report. It also offers potential investors a clue about the true position of your business and enables them to make an informed decision. 

This article contains simple steps to follow when you want to write a financial analysis paper from scratch. 


Step 1: The Cover Page

This is the first place to make an excellent impression on your business. Your company’s name, financial year, and the name of your report must show on the cover page. The cover page should entail your credentials and must be kept clean and well-organized. Make sure you attach a concise abstract where you mention the research statement and the reason why you are writing the financial analysis. 


Step 2: Spell Out your objectives

This section is the phase where you spell out your paper’s research methodology. This section entails several sources such as articles, materials, and books used in the creation of your financial analysis report. This section precedes the introduction section and offers you the chance to discuss the findings and objectives of the paper. In some cases, some individuals do not write this section and move to the introduction chapter in their financial analysis report. 


Step 3: The Introduction

This is, unarguably, the first page of your financial analysis report and must be treated accordingly. It sets the tone for your analysis report, and it is the section where you discuss several financial accounts and theories used by you to create your report. When you do this, it makes your project more credible and trustworthy. It is also crucial to state your entire resources and offer a thorough explanation in the reference list when you are about to complete your report. 


Step 4: Discuss Company overview

After the introduction, ensure you write about the company overview. It is critical to keep this section as interesting as possible. It must cover crucial facts about your company such as the scale, size, and sector of the business. However, do not forget to keep the introduction part concise and straightforward. 

The company overview is the part where you discuss the current and potential scope of your brand. Your aim is to keep the readers of the report informed about your business and allow them to make an informed decision about investing in your brand. Get necessary information from past financial reports, business studies, and trade journals to write a comprehensive company overview. 


Step 5: Investment thesis

This section discusses the technical aspect of your report. This section analyses the present and future growth tendencies of the business. It talks about the assets, liabilities, and capital investment of the company. You need to utilize this section to explain the share value and investment strategies of your company. This section of your report entails the cash conversion cycle, turnover ROI, efficiency ratios, and other important facets of the company. 


Step 6: Valuation

This is the most crucial part of your financial analysis report that must not be taken for granted. In the valuation section, you talk about the assets and stocks of the business. Students are often given information about the turnover as well as the profits/loss of the business in the question for university-level projects. 

On the other hand, accountants make use of final accounts and insights from the balance sheet to create the analysis report. It reveals the true state of the company as the assets and liabilities of the business are discussed. However, there are three major techniques for the evaluation of a company’s present value and stocks. Graphs, charts, and numbers can be used to explain your points in a convincing manner. These are book value analysis, the relative value method, and the discounted cash flow analysis. 


Step 7: Discuss the Key risks and gains

This section talks about the current and potential risks of the organization. However, basic SWOT analysis can be seen as one of the creative means of doing the risk/gains evaluation. It is advisable to utilize other major market evaluation strategies, as SWOT analysis is meant for minor projects. For instance, the PESTLE analysis is another unique strategy that can be used to have a thorough understanding of the market, as well as other factors that could have an impact on the company’s financial capacity. 

On the other hand, you should also discuss the principal risks, evaluations, gains, and losses that decide the business market value. This would inform the investors about the potential of investment. 


Step 8: Final insights

When you are through explaining the company and its financial position, you can work on the last part of your financial report. You have the chance to showcase your concluding insights about the brand and mention if it is running at a profit or loss. Ensure you support your points with important data information, financial theories, and accounts. In this section, you can discuss the company’s future potentials and enumerate some growth policies and market trends, as well as their effect on the brand. Make sure you support each of your journal entries with a receipt. 


Step 9: Reference list

Your reference list is the last section of your financial analysis report. In some cases, universities offer instructions about citations, and it is an excellent idea to work with the instructions. In a case where you are not given specific guidelines, make use of APA in-text referencing style, as this style works better for stat-based reports. 


Step 10. Read whatever you have written to check for any errors. 

However, if you want reputable report writing services for your financial analysis report, you can hire top-rated professionals to create it for you.


The Blogger Scientist is a "Medical Physiologist" and a "Financial Asset" Content Creator who aims at enlightening web reader on varying Financial Assets such as Stocks, FX, Crypto, MLM,. HYIP among others.

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