Practical Tips for Completing a Research Paper on Financial Performance Analysis
The research paper on financial performance analysis is the study of identifying the economic strength and weakness of an organization by developing a continuous contact between the items of balance sheet and profit loss account. Financial performance analysis helps in the long term and short term growth of a company and the path that has to be followed for the same. The analysis can be taken by the management of the organization or by a third party outside the organization.
To prepare a research paper on financial performance analysis, you have to choose an organization and perform the following studies in various areas of the organization.
- Industry study: Industry study is important for preparing a research paper on the financial data analysis of that organization. Study of the company’s history and board of directors is also very important. You can need to collect information about the total manpower and customers of the company.
- Study of the financial situation of the company: The financial situation of the company involves the complete study of past and future financial data of the company. You can also perform a detailed study about the competitors of the company and write a research paper on error analysis.
- Identify the method of financial statement analysis: The horizontal analysis compares the financial data of two or more years and the vertical analysis shows the financial fluctuations in each category of business. This step is normally completed with the guidance of the company officials.
- Users involved in the analysis: Financial analysis is carried out by lenders, investors, and suppliers of an organization in order to decide whether to invest in a particular company. The management of the company also performs an analysis to evaluate the performance of their organization. To write a research paper, you need to collect all information about the users involved in the financial analysis of the company.
- Cash flow analysis report of the organization: Cash flow analysis report actually shows how the cash is originated and used in the organization. This is what actually leads the investors to buy shares in the company. If the cash balance increases, more cash becomes available. Cash flow analysis is important for writing a research paper using regression analysis and also for preparing a summary of the financial status of the company.
A good research paper always welcomes any changes. Research papers are always dynamic and need to incorporate the knowledge you learned from the literature review.