– a method of researching economic processes based on studies of relationships, predominantly qualitative, occurring between the specific elements of these processes. It can be used for researching economic phenomena an processes taking place on the macro level (macroeconomic analysis) as well as phenomena and processes occurring within individual economic units and institutions (microeconomic analysis). Economic analysis clears the way for business diagnostics, facilitates decision making and promotes rationalization of economic processes on micro as well as macro scale. Mathematical methods (inter alia: margin calculation and linear programming) are widely applied, while conducting an economic analysis.
Evaluation of investment venture
Economic and financial analysis represents the core of economic papers such as business plan, feasibility studies etc. It is why banks put such great emphasis on it, from assumptions side i.e. their accuracy and genuineness, as well as presented and interpreted findings. On their basis many interesting conclusions can be made, for example that planned investment venture is extremely profitable.
Our financial analysis contain the following elements:
- detailed description of all assumptions made
- description of major findings and ratios and their interpretation
- part containing numerous analysis and economic projections
Our financial projections are in compliance with international standards (inter alia: UNIDO methodology) and embrace:
- Cash flow
- Discounted Cash Flow
- Profit & Loss Account
- Balance sheet
- Consolidated Balance sheet
- Debt Servicing
- Expanded Static Sensitivity Analysis
- Dynamic Sensitivity Analysis with the calculation of expected internal rate of return and net present value
- Ratio analysis including: liquidity ratio, yield ratio, efficiency ratio, debt ratio and other ratios required by international standards (for ex. ARR, IRR, NPV, EIRR, ENPV, NPVR, dynamic payback period calculated on the basis of Discounted Cash Flow
- Value-added analysis
Cash flow, income statement(profit and loss account) and balance sheet can be additionally produced on client demand for ex. according to the formulas resulting from the international accountancy rules. We can also prepare analyses on the basis of recommended forms and documents.
Review of company’s performance
The cost-benefit analysis is not performed merely to verify or check whether a planned investment project will be cost- effective, but also to evaluate the up to date company’s performance, to be able to determine, whether the enterprise is functioning and developing correctly.
ABI-soft proposes to evaluate company’s current undertakings, which can include the analysis of financial reports such as: balance sheet, profit and loss account, cash flow from the last couple of years with a special emphasis placed on:
- Analysis of structural balances statement
- Assessment of fixed assets and resources structure
- Business agility analysis
- Company asset and capital productivity evaluation
- Analysis of cash flow
- Analysis of sales structure, figures/value and dynamics
- Analysis of interim balance sheet
- Value-added analysis
- Exploitation, operations, gross and net productivity analyses
- Cash flow analysis by specific types of enterprise activities