What Is a Company Analysis?

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Company analysis refers to the process of evaluating a company’s profitability, profile and products or services. It is also known as “fundamental analysis,” and it is generally used by investors. It incorporates basic company information, such as the mission statement, goals and values.

This process involves reviewing the history of a company and the events that contributed to shaping the firm. Moreover, it looks into the company’s goods and services. Company analysis studies the products manufactured by the company and analyzes the quality and demand for these products. If the firm is in the service sector, the investor reviews the services offered to the related market.

To evaluate a company, core elements, operations and functions are analyzed. The reports from the analysis of various aspects of the firm put together the big picture of its corporate quality. Analysts use the SWOT (strength, weakness, opportunity, threat) approach to determine a firm’s current and probable future position in its respective industry.

Thorough evaluation is essential in performing a company analysis, as it provides insight on the value of a company. This analysis helps investors assess the past performance and future prospects of the firm. It encompasses all aspects of the firm, including market share, profitability, growth prospects, finances and management structure. The results of a company analysis help external parties reach business decisions, such as investing or entering a partnership with the analyzed company.