Software for Financial Analysis
Versión Español
Financial analysis
Financial analysis is a method to establish the financial results of
business decisions, applying different techniques such as horizontal analysis,
vertical analysis, financial indicators and others, in order to diagnose the
financial situation of the same and allow presenting conclusions and
recommendations for the correct decision making.
Importance
The information obtained through financial analysis is of great importance
as it allows:
To the administration of the company: Evaluate the management, determine
the variation of the results, according to what was planned and executed, the
established controls, their strengths and weaknesses in the finances.
To the owners: Know the levels of profitability of their investment in the
company, the growth of the same and the results that serve as the basis for
decision making.
To the banks and creditors: Know the liquidity and the payment capacity of
the company and the possibilities of granting a loan to the business in the
current circumstances.
Techniques
Financial analysis techniques are the procedures used to simplify or reduce
the descriptive and numerical data that integrate the financial statements, in
order to measure different relationships in the same period and the changes
presented in different accounting periods, compare results achieved with the
goals planned, controls applied, profitability and borrowing capacity, among
others.
Financial analysis tools:
Vertical analysis
It is a static analysis, studies the financial situation at a given time
and does not take into account the changes that have occurred over time.
To perform this analysis, a single financial statement is taken and related
to a certain total (base figure, which represents 100%) each of its parts.
Horizontal Analysis
It is a financial analysis tool that consists of comparing homogeneous
financial statements corresponding to two or more consecutive periods; When
making this comparison you can see the changes obtained in the accounts of
passive assets and equity, income, cost and expense of a company in terms of
money.
Financial reasons or indicators
Accounting, a financial reason is the result of establishing the numerical
comparison between the figures corresponding to two accounts of the same
financial statement, or of two different financial statements, with the purpose
of forming an idea of the behavior of a specific aspect, sector or area of
the company.
The most frequently used financial ratios have been grouped according to
their usefulness, like this:
Liquidity reasons
Reasons for activity or rotation
Reasons for indebtedness or leverage
Reasons for profitability
Reasons for the company's market value
The analysis of each of these reasons allows to conclude the state of the
financial situation of the company.
The software uses the main financial or common reasons when analyzing a
financial statement; such as:
Current reason
Net working capital
Financial indebtedness
Total asset turnover
Debt ratio
Impact of the financial burden
Short term indebtedness
Leverage Indicators
Gross profit margin on sales
And others more included in the 2020 version
The application allows in a simple and practical way, to bring all those
people who do not have knowledge in financial analysis to use the various
indexes or financial reasons, so that they can know the financial situation of
their business; The application has answers and advice on each index analyzed.
Concepts:
For software management, analysis and interpretation, it is necessary to know some accounting or financial concepts, which will allow the proper use of the data or information provided by the application.
For software management, analysis and interpretation, it is necessary to know some accounting or financial concepts, which will allow the proper use of the data or information provided by the application.
(Four reasons or indices will be explained by definitions and examples)
Current Reason (index 1)
It is a frequently used liquidity ratio, which measures the short-term availability of the business to cover its current liabilities obligations; This index shows how many pesos of the current assets of the company each peso of less than one year debt is being backed up.
The current ratio indicates the ability of the company to meet its financial obligations, debts or short-term liabilities.
To calculate this index it is necessary to have the data provided by the financial statement in the accounts corresponding to current assets and current liabilities, as follows:
Current active:
Current assets are those assets that are likely to be converted into cash in a period of less than one year. An example of these assets in addition to cash and banks, there are short-term investments, portfolio and inventories.
Current Liabilities:
Current liabilities refer to the liabilities (debts) that the company must pay in a term equal to or less than one year.
The liabilities of a company are classified into those long-term liabilities and short-term liabilities, that is, those debts that are payable in the short term, which are known as current liabilities.
Current Reason (index 1)
It is a frequently used liquidity ratio, which measures the short-term availability of the business to cover its current liabilities obligations; This index shows how many pesos of the current assets of the company each peso of less than one year debt is being backed up.
The current ratio indicates the ability of the company to meet its financial obligations, debts or short-term liabilities.
To calculate this index it is necessary to have the data provided by the financial statement in the accounts corresponding to current assets and current liabilities, as follows:
Current active:
Current assets are those assets that are likely to be converted into cash in a period of less than one year. An example of these assets in addition to cash and banks, there are short-term investments, portfolio and inventories.
Current Liabilities:
Current liabilities refer to the liabilities (debts) that the company must pay in a term equal to or less than one year.
The liabilities of a company are classified into those long-term liabilities and short-term liabilities, that is, those debts that are payable in the short term, which are known as current liabilities.
Mathematical Procedure:
Current active
Current ratio = ----------------------
Current liabilities
8000000
Current ratio = -------------- = 8
1000000
Application procedure:
Current active
Current ratio = ----------------------
Current liabilities
8000000
Current ratio = -------------- = 8
1000000
Application procedure:
In the application the calculation is made and the answer is given in an
explanatory way for the user.
Financial indebtedness (index 2)
It is an indicator that allows to know to what degree and in what form the creditors participate in the financing of the company; Likewise, the ability of the company to access new credits.
To calculate this index it is necessary to have the data provided by the financial statement in the accounts corresponding to financial obligations and net sales, as follows:
Financial obligations:
It represents the value of the loans that the company has received from financial institutions; (The value of loans received by financial institutions)
Net sales:
They are the "gross sales" minus the amount of returns, bonuses, rebates and discounts.
Mathematical Procedure:
Financial Obligations x 100
Financial Indebtedness = -----------------------------------------
Net sales
15000000 x 100
Financial Indebtedness = ---------------------- = 15
100000000
Application procedure:
Financial indebtedness (index 2)
It is an indicator that allows to know to what degree and in what form the creditors participate in the financing of the company; Likewise, the ability of the company to access new credits.
To calculate this index it is necessary to have the data provided by the financial statement in the accounts corresponding to financial obligations and net sales, as follows:
Financial obligations:
It represents the value of the loans that the company has received from financial institutions; (The value of loans received by financial institutions)
Net sales:
They are the "gross sales" minus the amount of returns, bonuses, rebates and discounts.
Mathematical Procedure:
Financial Obligations x 100
Financial Indebtedness = -----------------------------------------
Net sales
15000000 x 100
Financial Indebtedness = ---------------------- = 15
100000000
Application procedure:
In the application the calculation is made and the answer is given in an
explanatory way for the user.
Debt Ratio (index 3):
It is an indicator of indebtedness that allows to know to what degree
and of which form the creditors participate in the financing of the company;
also the ability of the company to access new credits.
This index in particular allows to know the percentage of participation
of the creditors in relation to the financing of the assets of the company.
To calculate this index it is necessary to have the data provided by the
financial statement in the accounts corresponding to total liabilities and
total assets as follows:
Total active:
They are all the rights and assets that a company has.
Totally passive:
They are all debts and obligations that the company has.
Mathematical Procedure:
Total Liabilities x 100
Debt Ratio = ---------------------------
Total active
15000000 * 100
Debt Ratio = ----------------------- = 18.75
80000000
Application procedure:
In the application the calculation is made and the answer is given in an
explanatory way for the user.
Short-term indebtedness (index 4):
It is an indebtedness indicator that indicates what percentage of liabilities have maturities of less than one year.
To calculate this index it is necessary to have the data provided by the financial statement in the accounts corresponding to current liabilities and total liabilities as follows:
Current Liabilities:
Current liabilities refer to the liabilities that the company must pay in a term equal to or less than one year.
Totally passive:
They are all debts and obligations that the company has.
Mathematical Procedure:
Current liabilities x 100
Short Term Debt = -------------------------------
Totally passive
3000000 x 100
Short Term Debt = ---------------------- = 20
15000000
Application procedure:
Short-term indebtedness (index 4):
It is an indebtedness indicator that indicates what percentage of liabilities have maturities of less than one year.
To calculate this index it is necessary to have the data provided by the financial statement in the accounts corresponding to current liabilities and total liabilities as follows:
Current Liabilities:
Current liabilities refer to the liabilities that the company must pay in a term equal to or less than one year.
Totally passive:
They are all debts and obligations that the company has.
Mathematical Procedure:
Current liabilities x 100
Short Term Debt = -------------------------------
Totally passive
3000000 x 100
Short Term Debt = ---------------------- = 20
15000000
Application procedure:
In the application the calculation is made and the answer is given in an
explanatory way for the user.
Acquire the software
Download the software in its 2020 version with more modules and functions, available for android devices at:https://play.google.com/store/apps/details?id=com.acme.financexpert
Download the software in its 2020 version with more modules and functions, available for android devices at:https://play.google.com/store/apps/details?id=com.acme.financexpert
And at:
https://articulo.mercadolibre.com.co/MCO-552995818-software-para-analisis-financiero-_JM?quantity=1#position=1&type=item&tracking_id=43b05d7b-6ebe-4eb0-b7ae-6ec6e33a0104
More information about this new version in:
More details about software and financial mathematics in the following
blogg: http://www.finanmicro.blogspot.com
Other related links:
If you want to know a little more about interest rates and the software to perform these calculations, you can visit my other blog: http://programaparaconvertirtasasdeinteres.blogspot.com
If you want to know a little more about interest rates and the software to perform these calculations, you can visit my other blog: http://programaparaconvertirtasasdeinteres.blogspot.com
More on financial analysis and its application through the use of Apps
for smartphones and tablets in this link: https://app-financiera.blogspot.com/
You may also be interested in credit analysis software: DataExpert
http://softwareanalisiscredito.blogspot.com/
To purchase any of the versions of the software described in the blogs,
you can write to email: quindiofinanciero@hotmail.com or add me to my facebook
https://web.facebook.com/Development.and.Research/
You can also communicate through WhatsApp or Telegram
Whatsapp: 57 311 7341743
Telegram: 57 311 7341743
The software is available for computers with Windows operating system
and for SmartPhones or phones with Android operating system.
The FinanMicro Software in its commercial version is installed in 46 computers of the Accounting Laboratory of the
Faculty of Ecological and Administrative Sciences, Public Accounting Program
with high quality accreditation. Quindio's University. Armenia Quindío
Colombia.
