Financial Analysis

At Stonehenge, we’ll take a discerning look at your business and apply our years of experience to provide a financial analysis that tells you exactly where you stand.

We can evaluate every aspect of your business, including projects, budgets and all finance-related transactions, to assess their performance and determine their suitability. Our in-depth analysis shows you in clear terms whether or not your business is stable, solvent, liquid, or profitable, and lay out a course of action that makes sense for your specific situation.

Our financial analysis services look at the underlying financial health of your business, including:

• Break-Even Analysis
• Cash Flow Analysis
• Cost Analysis
• Debt Analysis

Our expert financial planning and analysis services will also help you evaluate economic trends, set out sound financial policies and create long-term plans that will help you plan smart and sustainable business activities, identify areas for investment and lead to a healthier and more profitable company.

We apply our years of experience and accounting expertise to synthesize financial numbers and data and provide a thorough examination of all of your financial statements, including the income statement, balance sheet and cash flow statement. We’ll then use these inputs to calculate ratios and compare them against both industry standards and your historical performance, providing a clear and accurate picture of where your company currently stands.

One key ratio that we look at is the return on assets or ROA. Companies often fail to take maximum advantage of their assets and reap the highest possible return from what they own. Our financial analysis determines how efficiently you’re using your assets as a measure of profitability when compared to others in your industry, then find ways to improve that ratio, so you’re getting the most out of your assets.

Other important ratios we calculate and explain to you include the net present value and internal rate of return, two key metrics that help you identify projects which projects are worth executing on.

If you extend credit to your customers, as many businesses do, you’ll probably have a period of time in which the cash receipt from your sales is delayed. If your company carries large receivable balances, our analysis helps you keep track of your outstanding sales. This allows you to identify your average collection period, the amount of time it takes for that credit to be converted into cash, and your overall cash conversion cycle.

Importantly, our analysis extrapolates key metrics of your past performance, including your net earnings and profit margin, providing a historical trend analysis that can help you identify seasonal trends and plan better for the future.

Once we’ve completed our analysis, we’ll sit down with you to go over it and make sure you understand it in detail. After that, you’ll be armed with the information you need to make sound business decisions that can help move your business forward.