Financial Model & Analysis
The models of finance by topacademics includes following things.
- What is this business about to do?
- How will it perform this?
- How is it going to reflect in financial world?
These models have captured the operations, which the company is going to be handled in the future, the investments, which it is going to determine the future possibilities for the company and other risks that it is going to face.
These models should capture all the comprehensive, consistent and reasonable points of the financial program.
1. Cash flow statement
The cash flow statement by the topacademics includes the outline for cashing out the growth, borrowings, investments and returns of your investors.
2. Income Statement
The income statement by the topacademicshelps you in measuring the operational results and their measurements. They will help you in making statements for incoming items in the percentage of revenue, changing your identity, according to the costs of sales, operating margins for expense and grossing profits with the passage of time.
3. Balance sheet
The balance sheet prepared by the topacademicshelps you in measuring future leverage and liquidity. It also completes the statements of finance as a whole, which will measure the potential risks of all the investments you are making.
4. Break even analysis
The job of a Break-even analysis done by the topacademicsis to make sure that your business plan is working perfectly. It can help you even when you have not decided that you should write a business or when you are still figuring out the idea, you think is worth your time and money. It will also be helpful after your company has reached the estimated success as a structure, which will figure out the pricings of your products. In order to calculate the breakeven points of your plan, topacademicsidentify the variable and fixed costs of your products. Costs, which are fixed and quite stable and they do not change according to the volume of sales. They are often in the shape of taxes and rent. You always have to pay these expenses regardless of the number your product has been sold. To find out the breakeven point of your sales, topacademicsuses the equation given below: The breakeven points=costs which are fixed/ (selling price of units-costs of variable)
5. Ratio Analysis
The analysis of the ratio done by the topacademicswill assist you with projecting and understanding:
- Cost control
- Asset turnover
- How these ratios have changed (or not) over time.