Financial Analysis &
Strategic Health
The financial and strategic health of a business can be
measured via multiple analyses including:
Income
Statement Analysis and Reporting
Balance
Sheet Analysis
Shareholder
Value Analysis
Human
and Financial Resource Allocation by Activity
Significant
Activities and Their Cost Drivers
Supplier
Analysis
Strategic
Balance Sheet
This section presents standard financial statements as well as additional
strategic statements to more fully analyze the strategic health of the business.
The business manager should add as many other financial statements (e.g., a cash
flow statement) as appropriate to meet the needs of the business.
The importance of sound and accurate financial statements cannot be
stressed enough. But to rely only on financial statements alone would be very
dangerous. Two companies with identical financial statements as of today
could have totally different futures. One company could have high employee
morale, satisfied customers, and new products ideally suited to meet the
changing needs of customers. The other company could be near bankruptcy because
a new competitor is about to introduce a significantly superior product at a
rock bottom price. Analyzing standard financial statements with the
strategic balance sheet presents a more accurate assessment of the
total health of the business.
| 
