Financial analysis is the process of evaluating businesses,

projects, budgets, and other finance-related transactions to determine

their performance and suitability. Typically, financial analysis is used to
analyze whether an entity is stable, solvent, liquid, or profitable enough
to warrant a monetary investment. Financial analysis refers to an
assessment of the viability, stability, and profitability of a business, sub-
business or project. It is performed by professionals who prepare
reports using ratios and other techniques, that make use of information
taken from financial statements and other reports.
Corporate financial analysis is a quantitative method of
evaluating a company's financial position and the market value of its
stock. It is based on the audited financial reports that every public
company is required to publish annually to comply with regulatory
obligations.
Investment analysis involves researching and evaluating a
security or an industry to predict its future performance and determine
its suitability to a specific investor. Investment analysis may also involve
evaluating or creating an overall financial strategy.
● Types of Financial Analysis
● Fundamental Analysis
● Technical Analysis
Horizontal analysis usually examines many reporting periods,
while vertical analysis typically focuses on one reporting period.
Horizontal analysis can help you compare a company's current financial
status to its past status, while vertical analysis can help you compare
one company's financial status to another's.

Why Is Financial Analysis Useful in 200 words

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Financial analysis is invaluable for individuals, businesses, investors, and policymakers due to its
multifaceted utility in understanding, evaluating, and managing financial matters. Its significance can
be summarized as follows:
 1. Assessing Financial Health: Financial analysis allows us to scrutinize the financial health of
entities, be it a business or an individual. By examining income, expenses, assets, and
liabilities, it provides a comprehensive picture of one's financial standing.
2. Informed Decision-Making: It empowers decision-makers with quantitative insights and
metrics. From investment choices to business strategies, it aids in making well-informed,
rational decisions.
3. Risk Management: Identifying and mitigating financial risks is a critical aspect of financial
analysis. It aids in recognizing vulnerabilities and devising strategies to safeguard against
unforeseen challenges.
4. Performance Evaluation: Over time, financial analysis helps track and evaluate financial
performance. By comparing current results with historical data and industry benchmarks, it
unveils trends, strengths, and areas that need improvement.
5. Investment Decisions: Investors depend on financial analysis to gauge the financial health
and growth potential of potential investments. It underpins the decision to invest in stocks,
bonds, real estate, or other financial instruments.
6. Creditworthiness: Financial institutions rely on it to assess the creditworthiness of
borrowers. A robust financial analysis can facilitate securing loans and credit on favorable
terms.
7. Strategic Planning: In the business realm, financial analysis informs strategic planning,
helping set financial objectives, budget resources, and allocate them efficiently.
8. Valuation: It is indispensable for determining the value of assets, companies, and investment
opportunities. Accurate valuation is crucial for buying, selling, or investing decisions.
9. Compliance and Reporting: Financial analysis ensures compliance with accounting
standards and regulations, enabling organizations to prepare accurate financial statements
for stakeholders and regulatory authorities.
10. Performance Benchmarking: Comparing against industry peers is enabled by financial
analysis, aiding in evaluating competitiveness and identifying areas for improvement.
11. Tax Planning: For both individuals and businesses, financial analysis supports the
development of tax optimization strategies, reducing tax liabilities within legal boundaries.
12. Investor Relations: Publicly traded companies employ financial analysis to communicate
their financial performance and outlook, fostering transparency and confidence among
shareholders and potential investors.

In sum, financial analysis serves as a structured and indispensable tool for comprehending financial
data, promoting informed decision-making, managing risk, and achieving financial objectives across
various domains. Its pervasive applicability underscores its enduring importance in modern finance.

How to conduct a financial analysis report

1. Gather financial statement information. To begin conducting your financial
analysis report, you must collect data. ...
2. Calculate ratios. ...
3. Conduct a risk assessment. ...
4. Determine the value of your business. ...
 5. Company overview. ...
6. Investment. ...
7. Valuation. ...
8. Risk analysis.

What are the five methods of financial statement analysis? There are
five commonplace approaches to financial statement
analysis: horizontal analysis, vertical analysis, ratio analysis, trend
analysis and cost-volume profit analysis. Each technique allows the
building of a more detailed and nuanced financial profile.
● Application of Data Science in Finance Industries
● Risk Analytics
● Real-Time Analytics
● Consumer Analytics
● Customer Data Management
 ● Providing Personalized Services
● Fraud Detection
● Algorithmic Trading

Predictive sales analysis is the processes and software that examine

the historical and current sales data sets to predict sales outcomes and
enhance business performance. The method uses statistical modeling,
data mining techniques, and machine learning to find patterns in
different data sets. Predictive sales analytics uses sales data to identify
patterns in customers’ and leads’ behaviors to make future sales
predictions. Hence, you can better understand your business’s financial
health for the months or years to come.

1. Increase the Accuracy Level of Sales Forecasts

2. Improve Lead Generation

3. Maximize Customer Lifetime Value

Cash Flow Analysis

Cash flow analysis is an important aspect of a company's financial
management because it underscores the cash that's available to pay
bills and make purchases—generally, money it needs to run and grow
the business. Companies, investors, and analysts examine cash flow
for various reasons, including for insight into a company's financial
stability and health and to inform decisions about possibly investing in a
company.
There are three cash flow types that companies should track and
analyze to determine the liquidity and solvency of the business: cash
flow from operating activities, cash flow from investing activities and
cash flow from financing activities. All three are included on a
company’s cash flow statement.
In conducting a cash flow analysis, businesses correlate line items in
those three cash flow categories to see where money is coming in, and
where it’s going out. From this, they can draw conclusions about the
current state of the business. Depending on the type of cash flow,
bringing in money in isn’t necessarily a good thing. And, spending
money it isn’t necessarily a bad thing.
● STEP 1. IDENTIFY ALL SOURCES OF INCOME.
● STEP 2. IDENTIFY ALL BUSINESS EXPENSES.
● STEP 3. CREATE YOUR CASH FLOW STATEMENT.
● STEP 4. ANALYZE YOUR CASH FLOW STATEMENT.

What Does Product Profitability Mean? Profit is the amount of

revenue that remains after accounting for all expenses, debts, and other
costs. So product profitability, then, refers to how much money a
product makes minus what it costs to build, sell, and support it.
Businesses also refer to profit as the bottom line.
Product profitability analysis is the process of linking a company's
overall profit back to the profit of a specific product. A company's overall
profit is the money they have left at the end of an accounting period
after subtracting total costs from total revenue.
DATA ANALYTICS BUSINESS ANALYTICS

Studying data in-depth using complex Studying data using complex tools on
statistical methods a conceptual level.

Identifying and understanding trends in Evaluating emerging trends from huge

huge datasets. datasets

Working with technical teams only Working with Data Science teams and
such as IT and Data Science business management teams

Suggest process improvements Suggesting solutions with regards to

related to specific datasets specific businesses

Have a good experience in IT related Have experience working business

fields. administrations and industry’s domain.
6 Key Financial Analytics
● PREDICTIVE SALES ANALYTICS
● CUSTOMER PROFITABILITY ANALYTICS
● PRODUCT PROFITABILITY ANALYTICS
● CASH FLOW ANALYTICS
● VALUE DRIVER ANALYTICS
● SHAREHOLDER VALUE ANALYTICS
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People analytics emphasizes actionable analytics applied to people

management and recruitment, while HR analytics concentrates on
descriptive data analysis and decision-making tools.

Benefits of an HRIS
● Record-keeping.
● Compliance.
● Efficiency.
● Efficiency.
● Self-Service HR.
HR Decision Making and HR Analytics
Cornerstone
Workday
SAP
Oracle
Ultimate Software
HRIS implementation in 6 steps
● Search.
● Plan and align
● Define and design
● Configure and test
● Train and communicate
● Deploy and sustain
Top 9 HR Analytics Tools
➢ R
➢ Python
➢ Excel
➢ Power BI
➢ Tableau
➢ Visier
➢ Qlik
➢ SPSS
➢ CIPLEX Optimizer

How to choose the right HR analytics tool

Step 1. Define The Goal
Step 2 – Collect and Manage the Data
Step 4 – Evaluate Models
Step 5 –Deploy Model
Step 6 –Present Results and Documents
 DIGITAL MARKETING BASICS
 Digital marketing techniques
 search engine optimization (SEO),
 search engine marketing (SEM),
 e-commerce marketing,
 social media marketing,
 DIGITAL MARKETING PLANNING
 Framework for summarizing strategy
 Planning framework (RACE – Reach, Act, Convert,
Engage)
 Plan - Create a digital marketing strategy
 REACH: Grow audience on-line
 Set targets for social media followers
 ACT: Increase Interactions on social medias
 Develop content marketing strategy
 Review social media and mobile marketing
platform
 CONVERT: Increase sales
 Set up a Conversion Rate Optimisation
 Review multichannel interactions
 ENGAGE: Build customer loyalty – improve
customer engagement
 Create a Customer Lifecycle
 Review customer loyalty
 Review customer satisfaction drivers
  IT TECHNOLOGIES FOR EFFECTIVE DIGITAL
MARKETING
 mobile intelligence platforms,
 the gender, age, race recognition and movement
 OLAP(Online analytical processing)
 Data Mining
 Data Warehousing
REASONS TO HAVE DIGITAL MARKETING STRATEGY
 Directionless if no strategy
 No idea of the on-line market share
 Competitors will gain market share
 Powerful online value proposition
 Not agile enough to stay ahead
 Template is proposed in the form of spreadsheets
 help to identify the priorities
 of the digital marketing strategy:
DIGITAL MARKETING BENCHMARKING
 It should be benchmarked;
 The digital transformation
 The management of systems and technologies
 Communications offsite and the on-site digital experience
across mobile and desktop.
 The benchmark can use 5 -point scale system:
 New/ No capabilities
 Developing capabilities
  Average capabilities
 Above average capabilities
 Market leading capabilities
Digital Level 1 Level 2 Level 3 Level 4 Level 5
Capability
Initial Managed Defined Quantifie Optimized
d

Strategic No Prioritized Defined Business Agile

Approach Strategy Marketing vision and aligned Strategic
Activities strategy strategy Approach
and road
map
Performance No Volume Quality Value Lifetime value
Improvement based based based
Process
Management Limited Verbal, but Sponsorship Appropria Integral part
buy-in inadequate and te of strategy
resourcing increased Investme development
investment nt
Resourcing No Core skills Dedicated Decentral Balanced
and structure Specific centralized resources ization blend of
skills or marketing
agencies skills
Data and Limited( Separate Partially Integrate Flexible
infrastructure No data, tools integrated d systems approach to
customer and IT systems and optimize
Data services data resources
base
Integrated Not Core Integrated Integrate Media
customer integrated activities inbound d optimized
Communicati synchroniz approach
Paid(
ons ed
Owned
media
Integrated Web site Desktop Partially Integrate Full
customer not and mobile personalized d, contextual
experience integrated support not Desktop and Personali personalized
personaliz mobile zed web, experience
ed experience mobile, e- and
mail and recommendat
social ions.
media
DIGITAL MARKETING TOOLS COMPARISON
 The criteria used for the comparison are
 Ease –of-use
 Relationship builder (possibility to build database with the
tool for customer relationship)
 Quick online campaign-tracking capabilities (analyzing
possibilities)
 Cost-effective (affordable cost <30 $ per month)
 Four tools passed the above criteria
 Vertical Response.
 WeMeUse,
 MailChimp,
 SalesForce.
 Most popular digital marketing platforms :
 Adobe
  IBM
 Oracle
 SalesForce
 SAS
 Teradata
 Marketo
DIGITAL MARKETING BASED ON INDOOR AND OUTDOOR
LOCATION TRACKING SYSTEMS
 Clients of shopping areas with Wi-Fi
 Recognition of their location
 Developing of heat maps of a crowd of people
 Creating databases with behavioural patterns
 Business Inteligence
 Real time Location based alerts
 Consumer generated content – reviews, discussions,
pictures
 BIANOR solution based on
 GPS – for outdoor,
 Wi-Fi,
 Bluetooth Low Energy (BLE)
 beacons,
 Virtual Reality
ONLINE MOBILE PLATFORM FOR DIGITAL MARKETING FOR
LOCAL RETAILERS
 BIANOR mobile platform
  online orientation
 entrepreneurs get
 customer data for digital marketing
 facilitate appointments between stores and users
 platform contains:
 Shop profile
 User profile
 Wish list
 Chat
MOBILE INTELLIGENCE PLATFORMS (MIP)
 Bitplaces MIP
 Manages mobile marketing campaigns
 Does detailed location analytics in real-time
 Messaging
 Argeting Sematic User Segments Filtering
 Claud manangement
 Helps gain new customers