Dark blue and white packaging behind stacks of coins of different heights, the tallest topped with an orange coin

Business model and financeFinancial analysis

Where do you really make your money?

Your annual accounts tell you what happened, not why. The Next Organization shows you which products, customers and choices drive your margin. That way you know how much financial room your strategy has.

Sound familiar?

Revenue is growing, but profit is not keeping up
Loss-making products or customers go unnoticed
You are profitable on paper, but your cash is tied up in stock
Investments feel like a gamble, because nobody knows how much room there is

From symptom to cause

A financial analysis brings together your profit and loss account, your balance sheet and your cash flow. Only together do they show where a symptom comes from.

What we look into for each symptom

For each symptom, we look for the answer in other figures.

Choose what you notice

What you notice

Profit lags behind revenue
What we look into

Profitability analysis and cost structure

Gross margin and contribution margin by product, customer group or region, and which costs grow along with revenue
What it lets you do

Adjust your pricing, product mix or costs

What you notice

Loss-making customers or products
What we look into

Customer profitability and lifetime value

What a customer brings in after the cost of serving them, and what the whole customer relationship is worth
What it lets you do

Decide which customers to grow, serve differently or let go

What you notice

Cash is tied up in stock
What we look into

Cash flow and working capital analysis

Stock days, days of receivables and the cash flow from your core business
What it lets you do

Free up working capital to invest

What you notice

Investing feels like a gamble
What we look into

Ratio analysis

Profitability, liquidity and solvency, compared with your sector where relevant
What it lets you do

Know how much you can invest and what an investment needs to return

An analysis is not an end in itself. Your financial health determines how much room your strategy has. That is why we translate the results into a financial target that supports your ambition.

The results guide your choices. You see which products or customer groups to grow, and where to adjust your prices or costs. The analysis is often the starting point for a business case or a new revenue model.

What you get

You know where you make money and where it leaks away. You see which products and customers drive your growth and where cash is tied up. And you have a financial target that fits your strategy, with room to invest.

Frequently asked questions

My accountant already prepares the annual accounts. What does a financial analysis add?

The annual accounts show how your business performed as a whole. We go one level deeper, by product, customer and choice. And we link the results to your strategy, so you know where to invest and what to stop doing.

How is this different from a business case?

A financial analysis looks at where you stand today and explains what you are making money on now. A business case looks ahead and works out the numbers for an investment or plan. The analysis is often the starting point for a sound business case.

Which figures do you need for a financial analysis?

You start with the annual accounts for the past few years and your current figures. For an analysis by product or customer, you need data from your accounting records, such as revenue and costs per order. If that is not available, we start with the figures you do have.