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Financial Assessment

Through our Financial Assessment service, we conduct a detailed review of a client’s financial statements to pinpoint opportunities for cash flow improvement and strategic advice to increase valuation. 

We employ the industry leading financial analysis software, ProfitCents Extreme, used by thousands of CPAs and financial planners nationwide.  The software allows us to benchmark the performance of client companies vs. their industry peers across dozens of key financial measures.   

A sampling of the performance statistics measured and their importance is summarized in the table below.


Area

Sample Performance Metrics

Importance
 

Liquidity & Borrowing
  • Current ratio
  • Quick ratio
  • Times interest earned
  • Working capital
  • Debt to equity ratio
  • Indications of a firm’s ability to meet its current obligations and service its debt. 
  • Impacts total investment required to buy the company or achieve growth targets
  • Measures equity leverage
 

Profitability & Expense Management
  • Gross margins
  • Net margins
  • Payroll to sales
  • Rent to sales
  • Advertising to sales
  • Return on equity
  • Return on asset
  • Margins are key measures of core health of business
  • Expense management in key areas
  • Shareholders return on investment
 

Efficiency Ratios
  • A/R turnover
  • A/P turnover
  • Inventory turnover
  • Net sales to working capital
  • Asset turnover
  • Indications of how well firm is managing collection and billing processes and utilizing working capital
  • Operational efficiency
  • Significant impact on profitability and value
 
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The Most Profitable Businesses in Hawaii
VR Hawaii and Stan Wachi, CPA summarize success factors behind the most profitable businesses in Hawaii

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Transactions
VR has sold more than 67,500 businesses since 1979. See a representative list of recent Hawaii transactions.

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