FINANCIAL ANALYSIS

SUBMITTED BY: MS. HONEY LEE RODRIGUEZ

 STRENGTH

WEAKNESSES
OPPORTUNITIES
THREATS
 The company Product is Brand Business is
has growing costly to extensions or particularly
interest to stay produce and investments in vulnerable to a
in the business the company technology to recession
industry. have other expand
expenses that business.
are high.
 SENSITIVITY ANALYSIS

Potential Seriousness
Problem (H-M-L)

Unable to Pay
Short-term
Obligations or HIGH
Low Current
Ratio of 0.86
 SENSITIVITY ANALYSIS

CAUSE CAUSE CAUSE

Current liabilities NO Sufficient Business may be

are greater than funds to pay of its operating beyond
their current liabilities its capacity
assets.
SENSITIVITY ANALYSIS

CAUSE CAUSE

Resources of High Receivable

business concern Collection Period
not properly
utilized
 SENSITIVITY ANALYSIS
EFFECT

The company's ability to

pay off its short-term
obligation is low in which
the company must
improve it's current ratio
and aim for a ratio of
greater than 1
 SENSITIVITY ANALYSIS
Switch from
Accelerate short-term Get rid of
Accounts debt to useless
Receivable long-term assets
debt

Negotiate
Control
overhead
for longer PREVENTIVE
payment MEASURES
expenses
cycles
 SENSITIVITY ANALYSIS
Invoicing
customers Longer Pay
CONTINGENT as quickly Cycles
ACTION as possible

Disposing Cut back Negotiate

spending on Negotiate
Discounts
Unproductive
Assets a lot of to Discounts
Suppliers
Expenses to Suppliers
 SENSITIVITY ANALYSIS
RESPONSIBLE TIME FRAME
PERSON

Head of the AS SOON AS

organization Accountant
POSSIBLE

Human Marketing
Resource Specialist
FISHBONE
ANALYSIS
 POLICY FORMULATION
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The Company Create a Clear Create an

must Acquire Categories for Aging Report
Favorable budget and to monitor
Terms of forecasting of Payment
Purchase expenses Status
 POLICY FORMULATION

Create a Standard Conduct a Quarterly Implement a

Evaluation Criteria Evaluation on Memorandum to
for Supplier unproductive assets set a Monthly
Agreements to dispose for an Meeting to address
addt'l cash problem
 THANK YOU FOR LISTENING!

FINANCIAL ANALYSIS
BY: MS HONEY LEE R. RODRIGUEZ