Annual reports of your competitors are a storehouse of useful information. Once a year your competitors themselves reveal their cards for you – you just have to be able to read it.
- How can they make such low prices?
- What are their plans for the next year?
- In what markets they operate most successfully?
- Where exactly you should optimize your costs?
- How else you could improve the results of your company?
- Which competitors could be available for sale and what could be the approximate price?
By knowing the answers to these questions you can significantly increase the efficiency of your business as well. Depending on a country, but quite often in May, the majority of companies have already submitted their annual reports and it is the best time to carry out analysis of competitors
To analyze your competitors, until their financial data is not out of date and to gain a comprehensive view of how to improve the results of your business – call us at +371 28611461 or email to firstname.lastname@example.org.
The quality of the data
We are sure that you read these lines and think to yourself: “Anyway my competitors make some accounting tricks and do not show the whole profit. Such analysis does not make any sense for my company. ” However, the experience of our customers tells us that in such cases, You can find out more than you could imagine.
The analysts of AG Capital for many years have been working with financial data of companies from different industries. In each sector we have gained in-depth knowledge and experience being able to understand the business behind the numbers. Just as Sherlock Holmes clings to the smallest detail to unravel the complicated case, we evaluate all the nuances available, comparing the various data from different parts of the annual report to each other to get the real picture of what is happening in the business of your competitors.
An example from practice: One of the companies we analyzed, showed good profitability (around 15% of turnover) and liquidity (cash balance – more than one million euros). At first glance it might seem that this is a great business, a strong competitor for our customer.
However, after noticing some strange data in the annual repot appendices, we came to some interesting conclusions. We saw that some of the costs do not appear in the financial report, that cash balances are by a great extent just a fiction and that the actual profit of the analyzed company was estimated to be close to zero. Accordingly, our client was able to adjust its operation strategy, not trying to copy the strategy of the competitor, which he was considering as as very successful before the analysis.