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Business Management Analysis (BWA) - This must be included

03/14/2023 | By: FDS

A business management analysis (BWA) is an important report that provides information about a company's financial position. Here are some important elements that should be included in a BWA:

Sales: the company's sales should be broken down by the different business units or products.

Costs: All costs related to the operation of the company should be recorded. These include, in particular, material costs, personnel costs, rental costs and other operating expenses.

Profits: The gross and net profits of the company should be shown.

Liquidity: The BWA should show the liquidity of the company, in particular the current account balance, open invoices, liabilities as well as loans.

Profitability: The BWA should provide information on the company's profitability, for example by calculating key figures such as the operating profit margin or the return on investment (ROI).

Comparative values: In order to be able to better interpret the results of the BWA, they should be set in relation to previous periods and, if necessary, also to industry standards or comparable companies.

A good BWA should be easy to understand and present the most important key figures at a glance. It is advisable to prepare a BWA on a regular basis in order to quickly identify changes in the company's financial situation and, if necessary, take measures to improve it.

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