The Financial Analysis Plan Template should include key financial ratios, key financial plots, interpretation of analysis results, and more. The CFO should conduct an analysis of the company’s financial statements at the end of every financial period, or as required by Top Management and the Board of Directors and/or in accordance with law. The financial analysis should include:
The CFO should list key ratios for analysis in Section I on the FS1020-1 FINANCIAL ANALYSIS PLAN. The particular ratios used for analysis should be consistent over time; the CFO should present valid reason(s) for adding or dropping ratios used for analysis. The CFO should also complete the information on the Financial Analysis Plan about ratios used that can provide valuable information about how the business is performing and areas of strengths and weakness.
The CFO should review and evaluate the information compiled and calculated, then note any meanings, interpretations, and explanations for the results in Section V of the FS1020-1 FINANCIAL ANALYSIS PLAN.