A financial analysis format is a document which outlines the means by which a financial analysis is conducted. It is a sort of report or a documentation of the analytical tools used in financial analysis, its purpose and benefits. Thus, a financial analyst format must be well written by trained professionals who know what to include and what to discard.
Sample Financial Analysis Format
Date of submission of financial analysis: _____________________________
Financial analysis commissioned by: _________________________________
First Paragraph: The first paragraph of a financial analysis must include details of the exercise especially with regards to individuals compiling the report, and the company commissioning it. Often, a financial analysis is conducted by a company’s internal staff but in some cases, external agents are hired. The purpose of a financial analysis must be mentioned as well as its benefits in securing a definite blueprint for the growth and development of the company.
Second Paragraph: The second paragraph of a financial analysis must include details of the analytical tools being used to carry it out. The issues of solvency, liquidity, cash flow of the organization, outstanding debts, bonds, stocks, and investments must be chronicled as these are the chief areas a financial analysis deals with.
Third Paragraph: The third paragraph of a financial analysis must list the findings in an easily accessible manner using graphs. This forms the crux of the entire exercise and must be handled with care. Inferences drawn must be mentioned as well. It must be remembered that on the basis of the analysis important policy decisions will be framed so care must be taken to be as accurate and unambiguous as possible.