What does it mean

Here is your complete FinStat guide for decrypting company finances.

FinStat is an online platform that allows for comprehensive analysis of Slovak companies. It offers a wide range of information that will help you assess their financial stability, performance, and overall condition. In this blog, we will dive into the world of FinStat and learn how to use it effectively for informed business decisions.

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Reliability and Origin of Data on FinStat

Data on FinStat comes from official registers and publicly available sources of Slovak companies. The platform collects these data, converts them into an easily understandable format, and presents them in a clear manner. Although FinStat strives for maximum accuracy, it is important to realize that in practice there may be slight inaccuracies due to updates and changes in reporting by e-commerce companies.

Key Information about the Company on FinStat

FinStat offers a wide range of information about companies, including:

  • Basic data: Name of the company, address, ID number, legal form, contact information
  • Financial results: Revenue, profit, gross margin, net income, ROE (return on equity), ROA (return on assets)
  • Income statement: Detailed overview of the company's income and expenses
  • Balance sheet: Overview of the company's assets and liabilities
  • Ownership structure: Information about the owners and management bodies of the company
  • Company history: Key milestones and events in the company's history

Difference Between Revenue and Profit

It is important to distinguish between revenue and profit. Revenue represents the total volume of a company's income from the sale of goods or services. Profit, on the other hand, is the net income that remains after deducting all expenses and costs. In other words, profit expresses how much money the company has made after covering all its operating costs.

Deep Understanding of Profitability

FinStat allows you to analyze the profitability of a company from various angles:

  • Net profit: The total profit the company achieved after deducting all expenses and taxes.
  • Gross margin: Shows what percentage of revenue the company retains after deducting the direct costs of producing or purchasing goods/services. A higher gross margin indicates better operational efficiency. Optimization of PPC campaigns for margin, how to achieve maximum profit
  • ROE: Measures the return on equity, i.e., the benefit the company generates from the money invested by the owners. A higher ROE suggests that the company is using its capital effectively.
  • ROA: Measures the return on the company's total assets, i.e., the benefit the company generates from all the assets it has available. A higher ROA suggests that the company is managing its assets effectively.

Income Statement and Balance Sheet: Two Key Statements

  • Income statement: Provides an overview of how the company earned and spent money over a certain period of time (e.g., year, quarter). It shows income from various sources, as well as expenses and costs associated with the company's operations.
  • Balance sheet: A snapshot of the company's financial position at a certain moment (e.g., end of the year). It shows what assets the company owns (e.g., cash, receivables, inventories, property) and what liabilities it has (e.g., debts, payable invoices).

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Assets and Liabilities of the Company: Difference and Significance

  • Assets: Economic resources that the company owns and uses for its activities. The balance sheet divides them into two main categories:
    • Long-term assets: Property that the company has available for more than one year (e.g., buildings, machinery, land)
    • Short-term assets: Property that will be converted into cash within the operating cycle (e.g., inventories, receivables)
  • Liabilities: Sources of financing for the company, which constitute its obligations to other entities. The balance sheet also divides them into two main categories:
    • Equity: Money invested by the company's owners and undistributed profit
    • External capital: Debts and obligations of the company to external entities, such as banks, suppliers, and creditors
      • Long-term liabilities: Debts that the company must repay over a period longer than one year (e.g., bank loans, leasing obligations)
      • Short-term liabilities: Debts that the company must repay within the operating cycle (e.g., payable invoices from suppliers)

Equity Versus External Capital

The financial condition of a company can also be assessed by analyzing the ratio of equity to external capital. A higher proportion of equity suggests financial stability and independence from external financing. Conversely, a high proportion of external capital may indicate a higher risk for the company, as it is more burdened with repaying debts.

FinStat as a Tool for Informed Decisions

FinStat is a valuable tool for anyone who wants to gain a comprehensive overview of the financial situation and performance of a Slovak company. By analyzing data on FinStat, you can make more informed business decisions, assess potential partners and suppliers, and gain a competitive edge.

Remember: Financial data can change over time. To obtain the most current information, we recommend visiting the FinStat website and looking into the latest available data about the company.

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