03/17/2009
Financial Physical Exam

Financial Physical Exam is the process by which an analyst investigates a corporation for signs of financial ailment. It generally follows the taking of the financial history – an account of the symptoms as experienced by the company. The examination aids in determining the correct diagnosis and devising a treatment plan.

Overview

Financial Physical Exam is a low cost - $400.00 - choice for bankers, accountants, consultants and businesspeople who want to understand a business’s financial condition to:

• Assess the risk of extending credit to a business.
• Be better prepared when seeking a bank loan by looking at financial statement data through a lender’s eyes.
• Identify strengths and weaknesses to improve operations and financial structure.
• Create the framework for a turnaround strategy and plan.
• Spot trends before they grow into problems.
• See the impact of key customers or products.

Financial Physical Exam is a program that runs within Excel. All results are color coded – green for ok, yellow for caution and red for danger. Thus by quickly scanning ratios you can see the status of a company. In addition, Financial Physical Exam it includes a number of charts which present all the data produced which appeals more to right brained analysts. Finally, includes a quick valuation calculator based on cash flow generated by the business.

Financial Physical includes over 50 traditional ratios as well as summary common-size financial statements, but that is not all! You also get specialized metrics that help you zero-in on key business issues:

• Cash analysis to determine the amount of cash required for working capital purposes and cash produced/absorbed by revenue growth.
• Sustainable Growth analysis to determine if additional resources will be needed to keep the business growing.
• Z-Score to help predict if the business is in danger of bankruptcy.
• DuPont Analysis to assess the quality of a business’s profitability and return on equity investment.
• Economic Profit calculation to show true return on capital employed.
• Comparison to industry data for 2006 from the IRS
• International version for the UK, Australia and New Zealand

Users

Accountants: Use Financial Physical Exam as an additional revenue source from existing clients. The output alone is definitely worth more than $500, and you can use it to generate additional consulting revenues in helping clients improve their financial performance. Financial Physical Exam provides a customized cover page for you to put on the output for your clients.

Bankers: Use Financial Physical Exam to quickly analyze the performance of a company seeking credit and where it is headed. Also help to quickly determine risk areas.

Private Equity Groups: Use Financial Physical Exam to quickly analyze investment opportunities and determine if their financial performance is good enough. Also it provides a standard format to monitor existing portfolio companies.

Small Companies: Looking for analysis on your own business and areas where there may be trouble, run Financial Physical Exam on your business and see where you stand and your possible value.

Input

Set out below is an input screen for the balance sheet information. As can be seen while requiring a fair amount of data for the 5 year period it is relatively simple and there is help for each of the cells required. This is the most complex of any of the data input screens. The time taken to input all the data if you have it, is about 10 minutes.

Output

To see the output from Financial Physical Exam, download an example by clicking on this link: FPE Example Output.pdf.

To get a trial copy, click on this link: Download Trial Program.zip

When the file is downloaded unzip it in the folder “C:\Program Files\Financial Physical. The trial version will work for 7 days from the date that you first open it. If during or after the trial period you wish to purchase a copy, please complete the registration document that is included in the zip file. Once the credit card is processed we will e-mail you the registration key to unlock the program.