How to Write a Financial Analysis Paper

How to Write a Financial Analysis Paper

There are many types of financial analysis papers. They differ depending on the industry, on the purpose of the financial analysis, and even on which department this financial analysis concerns. But in this work, we will talk about a financial analysis paper, which you can get as an assignment in college or university. Most likely you will be given certain sample data, that is, the result of the activities of a company, and you will need to analyze and write a report on it. In this article, we will tell you not only how to structure a high-quality financial analysis paper, but also how to simplify the process of writing it, as well as what are the troubles in writing a financial analysis paper, and how to submit a good paper, spending as little time as possible and avoiding the most frequent errors.

Leave Space for an Executive Summary

This part of the financial analysis paper is the executive summary, which students often forget about. In practice, this is the most important part of the financial analysis paper, because the investor, or the CEO of the company, or the head of the department will read it first. When students write financial analysis papers, they typically forget to leave 10-15% of the volume for the executive summary, thinking that just writing conclusions is enough. Don’t repeat this mistake, otherwise you will have to spend a lot of time editing the main text, in order to remove unnecessary words and paragraphs, and fit the executive summary. Despite the fact that you will write it at the very end, already now mentally reserve a few paragraphs of text for this part.

Write a Brief Industry Analysis

Financial analysis of a company cannot be carried out in isolation from the financial industry. Of course, it is not your task to write a complete overview of the industry and the market, that would be a separate task, but you need to devote a few paragraphs to this to show that you understand the financial environment in which the company operates, and how industry trends affect its financial indicators and the future. When writing an industry analysis, use as many numbers as possible, with citations like in the Statista. In this way, you will not only collect a lot of original references, which are always very appreciated by professors, but also show that you can operate with financial data, both at the level of a particular company and the entire industry.

Give a Comprehensive Business Overview

The separate numbers just don’t mean anything. It is important to describe the characteristics of the company, its goals, target market, its target audience and their interests, show how the company started and what tasks it has now. Only then the financial analysis will look comprehensive and really take into account all the key indicators. It is significant not just to bring some numbers, but also to link them together, to show the overall financial picture. This cannot be done without a business overview. If you don’t know how to write a good business overview, look for overviews of popular companies such as Apple, Tesla, Skype. They are both in the presentation materials of media kits, and simply on the website in the About section. You can also find more information like that in reports produced by famous audit services.

Ask for Help with Your Analysis if Necessary

Now, please pause and realistically evaluate how much of what you have just read relates to your knowledge and skills in the context of financial analysis writing. Because if you start writing, and you get stuck on industry analysis or business overview, and you don’t have enough time to write a full financial analysis, you won’t turn in your paper on time. Therefore, if you already feel that any of these points are too complicated for you now or will take more time than you are willing to spend, please contact the professional writing service for help. A simple “write my paper for me” request will certainly save the day. Since you are working with sample data for your college financial analysis, it would not be a violation to provide this information to third parties. Professional authors will analyze this information and write a high-quality analysis and report. Later, you can use this document in any way that suits you, including as an example of how to perform such tasks in the future. It’s better to have a good example of custom writing in front of your eyes than to procrastinate almost to the deadline and then fail the paper.

Don’t Forget About Key Financial Risks and Their Migration

Regardless of how positive your financial analysis will be, regarding the financial results of the company and its position in the market, you will definitely need to indicate the risks that accompany the company at this stage of development. Depending on the assignment, you may be asked to recommend how to manage these risks, or simply list the challenges the company may face in the short to medium term. Risk assessment is an important part of financial analysis. By doing a risk assessment in a college paper, you show that you can see a bigger picture and can draw conclusions by analyzing many factors at the same time. These are exactly the qualities needed from the future business analyst. 

There can be different volumes in financial analysis papers, and even goals for writing them, but the most important thing is to stick to the financial style of writing, use as many numbers as possible, describe existing trends and link the analysis you do to the general situation in the industry and the market. Read a few analytical articles on resources such as Financial Week or Harvard Business Review, and write down the brightest and most interesting words and phrases to make your article rich in financial lingo. We hope this article will help you cope with such a difficult task as writing a financial analysis paper faster and easier.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.