Financial Analysis for PNA and TNA

One of the key steps in uncovering the weak performance areas is through systematic comparison of performance as against the industry standards.

Training need analysis via financial approach
	Financial Statements		OWN KPI rate	INDUSTRY KPI rate	Negative Critical Gaps	Deeper Component gaps	Other performance solutions	Training
1	ROE	Profit margin
		Sales turnover
		Leverage
2	BEP	Price
		Volume
		Variable costs
		Fixed Costs
3	Working capital	Cash at banks
		Stocks
		Debtors
		Creditors
4	Fixed capital	Transportation
		Machinery and tools
		Shops
		Plant and Buildings
5	Sources  funding	Equity and
		Borrowings
6	Cash flows	Inflows
		Outflows
		borrowings
The kpi rates are always in ratios

A better approach than spending tens of thousands to survey the objective opinion of workers who generally would give the wrong and irrelevant feedback.

1. The following result could be drawn from the financial statements: return on equity and return on assets with breakdown analysis to determine the cause factors.
2. From the cost, volume, profit analysis the Return on Sales could be calculated at which time, the performance problems and issues on sales and costs could be identified too.
3. The performance of the functional departments are analyse through their respective KPIs as compared to the industry standards.
4. Performance gaps are refined and identified for their criticality.
5. Non performers could thereafter be traced where their competency gaps are identified through benchmarking with industry standard worker with their best practices.
6. The competency gaps could be clustered for the purpose of training delivery.
7. The expected ROI training could be calculated by comparing the net gains and benefits of training divided by total costs of training.