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What data does a business analysis (BWA) contain?

02/27/2024 | By: FDS

The Business Statement Analysis (BWA) is a crucial tool for companies to analyze and manage their financial performance. It provides a detailed insight into the economic situation of a company. Here are the key components of a BWA:

1. Sales Analysis

The sales analysis shows how much revenue the company has generated in a specific period. It provides insights into revenue structure and potential trends.

2. Cost and Performance Accounting

The cost and performance accounting analyze different cost types to determine the costs incurred in producing products or services. This enables accurate calculation and optimization of profitability.

3. Operating Result

The operating result indicates whether a company is operating profitably by calculating the difference between revenue and total costs. It considers all operational expenses.

4. Liquidity Analysis

The liquidity analysis assesses whether a company can settle its short-term liabilities. It examines liquidity ratios to identify potential cash flow issues.

5. Financing

The financing component of the BWA analyzes the capital structure of the company. It considers equity and debt to evaluate financial stability.

6. Success Analysis

The success analysis examines the profitability of the company. It includes metrics such as return on equity and return on total capital.

The business statement analysis provides companies with the opportunity to understand their financial situation and take targeted measures to improve their performance.

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