Analysis of Company Accounts.pptVIP

Strengths: Specific points where the company has clear advantages over its competitors Weaknesses: Often the converse of strengths Look for specific problem areas where the company could be vulnerable to competitive attack Opportunities: Opportunities in terms of procurement, manufacturing, RD, new markets etc Often the converse of threats Again look for specific points taking care to define the opportunity and the constraints upon its exploitation Threats: Often the converse of opportunities. Threats and corresponding weaknesses can lead to undue risk exposure. Make threats specific and attempt to measure their likely impact upon the business. Cost of maintaining capability Capacity and technology Market power (brands etc) Product base Human resources (training) Networks and relationships Investment in: New technology and RD Market and brand development Staff development Capital equipment INTERNAL EXTERNAL INTERNAL EXTERNAL ‘Catch up’ costs of: Reinstatement or renewal of asset base Investment in information systems Business network repair and development Staff development, redeployment Avoidance costs: Costs of market intelligence Insurance costs ‘Hedging’ strategies Internal control and internal and external monitoring and audit DuPont Ratio Analysis ROE ROTA Total Assets/Equity Return on sales Asset turnover Net income / Sales Sales - total cost Sales / Total assets Fixed Assets + Current assets KLI Strengths Weaknesses Opportunities Threats KEI KRI KPI PERL PERFORMANCE ROE ROA MARGINS (Gross, Operating, Net) EPS EFFICIENCY Debtor Age Creditor Age Stock turnover (days) RISK Debt Ratio Interest LIQUIDITY Current Ratio Quick Ratio * * * * * * * *