A well-defined business strategy will contain specific goals, objectives and accountabilities. These operational goals and objectives will frequently be reduced to financial terms.

When working with you to establish proper tools for (and a sound approach to) operational financial analysis Harmonic Systems Consulting (HSC) will help provide leadership with the information needed to evaluate current conditions and make important decisions regarding future actions.

During an engagement HSC will normally consider four distinct components of financial viability:

  • Profitability - the ability to earn income from operations and sustain growth
  • Liquidity - the ability to maintain positive cash flow, while satisfying immediate obligations
  • Solvency - the ability to pay long-term obligations
  • Stability - the ability to remain in business in the long run

A properly designed and well executed approach to financial analysis in an organization will help leadership set financial policy, establish financial controls, prioritize organizational activities and evaluate strategic options.

The tools HSC use for the financial analysis may include:

  • Cash flow analysis
  • Budget development and corresponding performance measurement
  • Product/Customer/Market profitability analysis
  • Inventory management
  • Capital Expenditure analysis

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