Financial Analysis to Predict Company’s Future Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Financial analysis can be an effective way to predict the further development of the company. It provides valuable information about successful business decisions and their impact and will also help prevent problems committed by the company in the past. An example of such a company could be Starbucks, which conducts a productive policy in this area. Thus, the analysis of this indicator will also help the company investigate its stability and profitability.

An example of a company for which a financial analysis can be carried out can be Starbucks. This organization is famous all over the world and has won a reasonably high level of customer loyalty. Sources state that “Starbucks’ net revenue reached 24.61 billion U.S. dollars in 2021, reflecting an increase over the previous year’s” (“Net Revenue of Starbucks,” n.d.). People know Starbucks from coffee shops that are available in almost every country. The primary method of collecting financial data for the organization under investigation is the Cost Method. With its help, Starbucks has sufficient stable development and is an attractive investment for interested parties, as it can predict its further development.

The financial analysis of any organization includes an assessment of the impact of external and internal factors on its functioning. For a more successful implementation of this process, it is necessary to develop a balance sheet and a cash flow statement, which will be considered the main aspects (Vogel, 2020; Langemeier, 2020). Then it is possible to conduct a study of the industry in which the company is involved, the most productive strategies to apply, and an analysis of competitors’ policies to calculate the necessary changes.

Therefore, it can be argued that a deeper look at the economic aspect of the organization’s activities in the past and present can contribute to forecasting further development and creating of the most effective strategy. Moreover, it will help to assess the past and current state of the organization soberly and correctly. Starbucks is an example of a global company that resorts to using this type of research.

References

Langemeier, M. (2020). Market value balance sheet and analysis. Center for Commercial Agriculture, Purdue.

(n.d.). Statista. Web.

Vogel, H. L. (2020). Entertainment industry economics: A guide for financial analysis. Cambridge University Press.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2022, December 15). Financial Analysis to Predict Company's Future. https://ivypanda.com/essays/financial-analysis-to-predict-companys-future/

Work Cited

"Financial Analysis to Predict Company's Future." IvyPanda, 15 Dec. 2022, ivypanda.com/essays/financial-analysis-to-predict-companys-future/.

References

IvyPanda. (2022) 'Financial Analysis to Predict Company's Future'. 15 December.

References

IvyPanda. 2022. "Financial Analysis to Predict Company's Future." December 15, 2022. https://ivypanda.com/essays/financial-analysis-to-predict-companys-future/.

1. IvyPanda. "Financial Analysis to Predict Company's Future." December 15, 2022. https://ivypanda.com/essays/financial-analysis-to-predict-companys-future/.


Bibliography


IvyPanda. "Financial Analysis to Predict Company's Future." December 15, 2022. https://ivypanda.com/essays/financial-analysis-to-predict-companys-future/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1