The Business Ferret Financial Analysis

The first line of your income statement is gross revenue. If applicable, use net revenue (gross minus deductions like refunds, discounts, or rebates). Make sure to use the same figure on all years.

All parts, materials, and labor used to create your products or services for sale; this is typically the second line on your income statement. If you're a service company (doctor, web developer), this would be the cost of all the professionals needed to provide that service (this could include you).

All expenses associated with running the business (office supplies, administration, utilties, etc.); this includes salaries, depreciation, and amoritization but excludes interest expense, cost of goods, and expense items not directly related to the business.

The interest paid on all outstanding loan balances for the year. Enter as a positive number; this value is converted to negative during analysis.

All cash balances in checking and savings accounts for the company.

Sales that are not received in cash but given terms in payment. This is the outstanding balance on those sales.

Raw materials, processed products, and finished products that are prepared for sale to be used for cost of goods. This should not include any items recorded as cost of goods.

Everything else that is a current asset - prepaid, other assets, other receivables. This would include everything due to be paid to the company in the next year.

This is the infrastructure of your buisness, including buildings, equipment, fixtures, furniture etc. recorded at your historical purchase price. This is a combination of all fixed assets and should not include depreciation.

A total of all depreciation, year-by-year, that you have taken against your gross fixed assets. Enter as a positive number; this value is converted to negative during analysis.

All other assets not recorded above including intangible assets and goodwill.

Money owed to vendors in terms instead of cash. Include other payables in this amount like rent due, payroll, etc.

A short-term bank loan used to help fund the holding of accounts receivable and inventory balances.

All other amounts owing that are due within a year - short-term loans, shareholder loans, etc.

All debt that is due on terms that are longer than a year. Enter as a positive number; this value is converted to negative during analysis.

Current net worth or shareholder equity. This is all total assets minus all liabilities.