The coronavirus has turned many small and big companies upside down. The decrease in sales, problems with suppliers, remote teams, all this should be managed wisely. These challenging times require business owners to put planning and, primarily, financial planning in the first place to ensure the survival of their companies.
Detailed financial analysis of the company will show the extent to which the company can react to the changes. You can calculate and analyze the main ratios, such as stability, liquidity, profitability, gearing, and others. You can also calculate the break-even point and see the acceptable decrease in revenues to keep the company profitable.
Incidents can affect the company’s ability to pay bills, make payroll, or respond to market changes. Therefore, it is crucial to ensure an excellent level of financial stability.