Financial analysis of Zest Spa Essay Example | Topics and Well Written Essays - 2500 words

Financial analysis of Zest Spa - Essay Example This research will begin with the statement that Zest Spa is planning to provide express services at one or more of three chosen international airports in India. The process comprises a significant amount of fixed and variable investment on the part of the company and therefore it was considered necessary to evaluate the project from financial as well as non-financial aspect. In a business plan or a new venture, financial analysis and projection are considered as an essential aspect thereof. The success and controlling of the business significantly depend on financial projections of a firm as quantitative control is equally important for a firm besides qualitative control. The financial analysis primarily consists of important aspects such as budgeting, investment appraisal, profit and growth projection and ratio analysis. The other measures that are also considered as useful are a determination of weighted average cost of capital and comparing the same with return on investment and internal returns and sensitivity analysis. Profit and loss analysis is essential in a business so that for an accounting period (commonly a year), the profit or loss incurred by a company is determined. The Profit and loss statement is one of the essential financial statements that present profitability of a firm. Determination of profit or loss is necessary so that an estimate of costs and earnings can be determined. The statement is also useful for the calculation of various margins.