For a complete results analysis, it is necessary to have in-depth knowledge of the company's sector of activity, as there are specific performance indicators that vary from sector to sector, which are essential for assessing what is really important for the segment.
In the construction industry, for example, land banking is one of the most widely used and essential financial indicators for boosting business opportunities for companies in the sector. Literally, it refers to the quantity of land that the company has in stock. When you understand the business of a construction company or contractor, it becomes obvious that construction is all about projects and, therefore, it is extremely strategic to know all the land available for the construction of a possible new project.
Another important performance indicator in the construction sector is the venezuela whatsapp data POC (Percentage of Compliance ), which measures the progress of a project's execution. With this data in hand, the financial analyst can relate it to the company's financial indexes and thus go beyond the obvious, deepen his analysis, propose more strategic actions, adding value to his analysis. However, before knowing the business in depth, it becomes very difficult to extract data from the financial indexes and transform them into relevant information for decision-making.
When the analysis refers to the retail and shopping mall sector, a widely used indicator is the GLA (Gross Leasable Area). For the finance professional to be able to understand this indicator, it is essential that he understands that the mall administrator depends on the leasing of stores as a pillar of revenue.
And it should not be forgotten that all these analyses must be based on accounting knowledge. After all, it is necessary to adapt it to the business in order to obtain consistent analyses of financial performance.
Macroeconomic indicators
With the retraction in economic activity that the country has been experiencing, which implies a drop in GDP, high unemployment, inflation and interest rates, it is essential to correlate macroeconomic indicators with sectoral financial indexes .
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For example, considering the retail and shopping mall sector, during the financial analysis , it is important for the professional to take into account that the crisis causes consumers to buy less, consequently, stores reduce their profit margins and many end up closing. A closed store is a loss for the mall administrator. As a result, the GLA index will be affected.
Therefore, it is the duty of the finance professional to understand how macroeconomics impacts the business. Without this analysis, the numbers are not very representative. Therefore, it is more difficult to understand finance than to be willing to learn about economics, accounting and the segment in which your company operates.