Company Analysis

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Introduction to company analysis

Company analysis is a process carried out by investors to evaluate securities, collecting info
related to the companys profile, products and services as well as profitability. It is also referred as
fundamental analysis. A company analysis incorporates basic info about the company, like the
mission statement and apparition and the goals and values. During the process of company
analysis, an investor also considers the companys history, focusing on events which have
contributed in shaping the company.
Also, a company analysis looks into the goods and services proffered by the company. If the
company is involved in manufacturing activities, the analysis studies the products produced by the
company and also analyzes the demand and quality of these products. Conversely, if it is a service
business, the investor studies the services put forward.
How to do a company analysis
It is essential for a company analysis to be comprehensive to obtain strategic insight. Being a
thorough evaluation of an organization, the company analysis provides insight to rationalize
processes and make revenue potentials better.
The process of conducting a company analysis involves the following steps:

The primary step is to determine the type of analysis which would work best for your

company.
Research well about the methods for analysis. In order to perform a company analysis, it is
important to understand the expected outcome for doing so. The analysis should provide
answer about what is done right and wrong on the basis of a thorough evaluation. It is,

therefore, important6 to make the right choice for the analysis methods.
The next step involves implementing the selected method for conducting the financial
analysis. It is important for the analysis to include internal and external factors affecting the

business.
As a next step, all the major findings should be supported by use of statistics.
The final step involves reviewing the results. The weaknesses are then attempted to be
corrected. The company analysis is used in concluding issues and determining the possible
solutions. The company analysis is conducted to provide a picture of the company at a specific

time, thus providing the best way of enhancing a company, internally as well as externally.
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See also

Balance Sheet Analysis

Financial Statement Analysis

Business Valuation

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