Financial Analysis
Financial Analysis refers to the assessment of a business to deal with the planning, budgeting, monitoring, forecasting, and improving of all financial details within an organization.
Understand, Identify, Analyze and Adjust
Understanding your organization’s financial health is a fundamental aspect of responding to today’s increasingly stringent financial reporting requirements. To avoid risks, organizations must quickly
- identify ascertain financial ratios and trends acrossin liabilities and assets
- analyze and adjust planned and forecasted amounts
- act to provide regulatory statements as needed
Financial Analysis applications built on the MicroStrategy platform make these activities easier and more efficient.
Business intelligence applications within the Financial Analysis application area include:
- Budgeting and Budget Analysis
- Financial Performance Management
- Revenue Analysis
- Cost Analysis
- Expense Analysis
- Cash Flow Analysis
- Balance Sheet Analysis
- Accounts Receivable Analysis
- Accounts Payable Analysis
- Invoicing and Billing Analysis
- Profit and Loss Statements
Financial Analysis with MicroStrategy
The unique strengths of the MicroStrategy platform are well suited for performing even the most demanding of Financial Analysis applications. Using MicroStrategy, Financial users have their detailed reporting, their scorecard of metrics, and their interactive dashboards at their fingertips via a single interface. From Profit Margin or Current Ratio to Assent Turnover or Debt to Equity, users have unlimited access to financial ratios and analytics when performing financial analysis with any MicroStrategy reporting tool.
Financial Report Analysis Module
In addition to providing a world-class platform for building Financial Analysis applications of business intelligence, MicroStrategy includes a Financial Reporting Analysis Module as part of its product set. This analytic module enables improved Financial Analysis and is built around a standard reporting process that allows an organization to gain insight into its financial health and to obtain standard regulatory reports (such as balance sheets and income statements).
The analytics in the Financial Analysis modules from MicroStrategy can be used to answer key financial analysis questions:
- What is the aging distribution of Accounts Payable and Accounts Receivable?
- Are there any customers with payment problems; if so, who needs to be notified?
- What are the values of assets and liabilities on a given date?
- What is the value of assets, liabilities, and owners’ equity on a given date?
- What is the breakdown of expenses by business units?
- Which business units are hitting their targets?
- What are the revenue trends by business units?
- What are the trends in revenue, by revenue types?
- What is the forecasted revenue? Has this forecast changed? Why have revenue forecasts changed?
- What is the actual amount of profit margin by business unit or region? What are the associated trends?
- What is the breakdown of costs by vendors, and what are the associated trends?
- What is the change in cash position from period to period?
- Which bills are due this week and for what amounts?