Financial Analysis and Forecasting
At Broadoak we firmly believe that in order to plan for the future we must understand how the business is performing today. This begins with a thorough review of the business’s operational and financial performance.
The majority of senior managers and business owners in today’s climate have substantial demands placed on their time. We believe in helping you to “step back and consider the bigger picture” & will better position your business in the long term.
Our analysis considers how efficiently your business is using your assets to generate revenue and in turn, earnings. While businesses clearly wish to maximise earnings it is fundamental to understand your cost structure. What portion of expenses are direct or indirect, fixed or variable? What is your breakeven volume or price and have you priced your products or services appropriately? How effectively are earnings being turned into cash flow, is its use optimal and sufficient to fund expansion?
Forecasting takes these figures and allows your business to determine future plans and whether you are well positioned to respond to unexpected events. It also allows businesses to determine whether a new investment will be profitable and how long it will take to recoup the investment made.
Sophisticated sensitivity and scenario analysis can model a number of different specific scenarios with changes in both multiple internal and external variables.