Dubai is a lucrative business destination for various local, regional, and global companies. With world-class infrastructure, business-friendly policies and economic stability, Dubai offer broad prospects for businesses and favorable conditions for entrepreneurial activity. In order to succeed in Dubai, companies need to assess their Financial viability and future scope along with the current economic stability hence, Financial Analysis is important for every business in Dubai.
What is Financial Analysis?
Financial Analysis refers to examining and analyzing of financial information of the company in order to reach a business decision. A financial analysis looks at various aspects of a company such as – profitability solvency, liquidity, and stability. Financial analysis is usually carried out by synthesizing information from various financial statements such as – income statements, balance statements, and cash flow statements of a company. It is used for evaluating economic trends, setting financial policies, building long-term plans for the business, and identifying projects or companies for investment.
Importance of Financial Analysis
Given below are the reasons why financial analysis is important for a business:
- Identifying the Company’s Assets and Liabilities
An outline of a company’s assets and liabilities are assessed during the forecast period in financial analysis. It helps in examining all the assets and liabilities a company owns.
- Measuring a Company’s Overall Financial Strength
Financial Analysis helps to understand the current financial strength of the company. The analysis helps to study whether the business is making profits or losses. It also helps in understanding various other financial aspects of the company such as its ability to pay off debt or dividends.
- Analyzing the Operational Efficiency of a Company
Certain ratios in a financial analysis help in analyzing the degree of efficiency of the company. It helps in examining if the company manages its resources in an effective way.
- Assistance in Strategic Decision Making
Financial Analysis helps in providing an understanding of how efficiently the company resources are utilized, operations are conducted, and debt is managed. It helps in analyzing the overall health and stability of the company and thereby helps the management to make much more informed business decisions.
- Helps in Spotting Trends
Financial Analysis helps in comparing various key numbers for a company over several years. This helps in identifying key trends over a period of time. The ratios can be compared and help to analyze whether progress has been made by the company.
- Future Budget Estimation
A number of future budget decisions and corrective actions rely majorly on Financial Analysis. The analysis can help a company to plan ahead and make informed budget decisions and achieve various business goals.
- Making Better Investment Decisions
Financial analysis is highly beneficial for investors. Appraisal of a company’s profitability and financial position is important before any investment decision. With the help of financial analysis, investors can make various key investment decisions.
Financial analysis is essential to provide pertinent information regarding a company’s financial position. It helps in analyzing the current strength and position of a company and further forecasting its viability. Financial analysis Services in Dubai can be used by a company’s management, shareholders, executives, investors, potential lenders or any other person or institution. It is widely used for important decision making and future forecasting.
DNA Growth is a global professional services provider specializing in Business and Financial Planning. We have 10 years of Company experience and over 50 years of cumulative professional experience in executing research, financial analysis and content development globally. We provide a range of Financial Analysis and Forecasting services to companies from diverse industries in different key geographies. We aim at helping clients with accurate and foreseeable forecasts that help them plan for the future in a better and structured manner.
Get in touch with us, visit: www.dnagrowth.com or Call our Financial Experts today at +91 98886 67447 (India) | +971 56149 8070 (Dubai)
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