Analysis of the Financial Health of the Firm

Name:

EVALUATING STARTUP FINANCES Company Name:

1. How many months until the company exhausts their cash holdings given their current rate of spending?

2. Will the firm have difficulty paying their bills in the short-run?

3. How long does the company’s product sit in inventory on average?

4. How many days does it take for the firm to collect on its A/R?

5. How many days does the company wait before paying its vendor invoices on average?

6. From start to finish, how long is each dollar tied up in the production and sales process before it is converted into cash?

Name:

7. For every dollar of assets, how many dollars of sales does your firm generate?

8. Does your company’s ROA come from its ability to create sales or from its ability to generate a high profit on those sales?

9. What are your company’s profit margins?

10. Which companies are in your firm’s peer group?

11. How does your company compare to its peers?

12. How has your company’s performance changed over time?

13. Summarize the financial health of your company