BA Technique #20: Financial Analysis
Assessing proposed solutions' economic viability, costs, and benefits
Greetings, my fellow BAs! It’s time to resume our fascinating exploration of the 50 essential Business Analysis techniques from The BABOK Guide v3. With Financial Analysis, we’ll unlock the secrets of financial statements, evaluate performance metrics, and gain a comprehensive understanding of an organization’s financial health. Brace yourselves for a deep dive into the world of numbers and financial insights. Let’s kick off our exploration of it!
What is this technique about?
Financial Analysis traces back to Benjamin Graham’s book “Security Analysis”, which laid the foundation for Value Investment. It involves analyzing a business’s financial statements, market position, and economic factors to forecast future prices. The goal is to determine a company’s value, assess management, and make informed investment decisions.
In Business Analysis, using the Financial Analysis technique involves examining data, statements, and indicators to gain insights into an organisation's position and performance. Business analysts can make informed recommendations and support effective decision-making by analysing financial information.
