Financial Statements Analysis
Financial reports are reviewed to assess profitability, revenue trends, cost structure, and overall financial stability over the past 3–5 years.
Debt and Liabilities
All existing debts, loan agreements, and contingent liabilities are examined to understand the company's financial obligations and credit risk.
Tax Compliance
Tax filings and audit histories are analyzed to verify compliance and identify any exposure to penalties or unresolved tax issues.
Working Capital Position
The company’s liquidity is assessed by reviewing inventory levels, receivables, and payables to determine its ability to meet short-term obligations.
Cash Flow Health
Cash flow statements are evaluated to distinguish between sustainable operating income and one-off inflows, ensuring a clear view of financial health.
Revenue Quality and Customer Concentration
Revenue streams are analyzed to determine consistency, recurrence, and dependency on key customers or contracts that may pose a risk.
Capital Expenditure and Investment Plans
Historical and planned capital investments are reviewed to understand the company’s growth strategy and asset utilization efficiency.
Ownership Structure & Related Party Transactions
The shareholder structure and any transactions with related entities are investigated for transparency, governance quality, and potential conflicts of interest.
