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A business management analysis (BWA) is an important tool for assessing the economic situation of a company. A BWA provides information about the current operating income and expenses, the financial situation and the profitability of the company.
Here are the steps to create a BWA:
Data collection: gather all relevant data such as sales, costs, expenses, payments, loans and other financial data.
Selecting the BWA form: There are several types of BWAs, including basic BWA and advanced BWA. The choice depends on the complexity of the business.
Calculation of key figures: Calculate key ratios such as gross profit, net profit, operating profit margin, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), liquidity ratio, and equity ratio.
Interpretation of Results: Interpret BWA results to understand the company's financial position. Identify weaknesses and opportunities and derive appropriate actions.
Reporting: prepare a report on the results of the BWA. This report should be easy to understand, clearly laid out, and include key findings and recommendations.
It is advisable to prepare a BWA on a regular basis in order to keep an eye on the economic situation of the company and to take measures for improvement if necessary.