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KAKB PLLC Advisors and Certified Public Accountants

Financial Analysis & Industry Comparison

Schedule a Consultation (480) 488-5255

It is important to business owners and management to understand the financial aspects of their business and how they compare to other businesses in their same industry.  Through our services we are able to provide both the financial analysis and comparison to industry standards, also known as benchmarking.

As part of providing these services we obtain the companies financial information for the most current five years to analyze the company's liquidity, solvency, operational activity, profitability, equity and investment leverage.  These measures of financial information will provide information about how the business is doing in the following general areas.

  • Measure the ability of the firm to pay its obligations as they become due including current liabilities and operating costs.
  • Measure the efficiency with which a firm carries out its operating activities.
  • Measure aspects of a firm's operating (income/loss) results on a relative basis.
  • Provide measures of relative sources of equity and equity value.

During our analysis and presentation to you we will look in more detail at each of these areas to determine where improvements may be needed.  We can discuss what internal controls, procedures and policies might need to be implemented by the company. Below are some of the more detailed areas that are covered in our analysis.

  • Ability to convert highly liquid assets to cash quickly to cover current liabilities and operating costs.
  • Quality of credit policies and the efficiency of collection procedures.
  • Efficiency of general inventory management.
  • Determine the company's operating cycle.
  • Measure rate of return on stockholders' investment.
  • Measure efficiency with which invested resources are used.
  • Indicate the extent of leverage in funding the entity.

We will aide you in preparing an action plan to implement any new policies, procedures or internal controls deemed necessary based on our analysis results.

Take a proactive approach in managing your business!

Contact us today for further information about our services.