How to Use FA for Better Financial Analysis and Decision Making

You know, I've been analyzing financial statements for over a decade now, and I've noticed something fascinating - the best financial analysis often mirrors what we see in championship-level basketball. Let me explain what I mean.

What exactly is FA in financial context, and why should businesses care about it?

When we talk about FA in our world, we're discussing Financial Analysis - the systematic approach to evaluating businesses, projects, and investments. Think of it like a coach reviewing game footage. Just as San Miguel's coaching staff analyzes every player's contribution - from Jericho Cruz's 23 points to the supporting cast's combined efforts - financial analysts examine every aspect of a company's performance. I've found that companies who master FA make decisions with the same precision that championship teams display on the court.

How can FA transform raw financial data into actionable insights?

Here's where it gets really interesting. Remember how San Miguel didn't just rely on their star players? Multiple contributors stepped up - Cruz with 23 points, supporting Fajardo and Perez, while Trollano, Lassiter, and Tiongson combined for 33 points. That's exactly what proper FA does - it shows you not just your "star performers" (your revenue numbers) but all the supporting metrics that contribute to financial health. In my consulting work, I've seen too many companies focus only on their "June Mar Fajardo" equivalent - their top-line revenue - while ignoring the crucial supporting players like cash flow patterns and operational efficiency.

What common mistakes do companies make in financial analysis?

Oh, this one hits close to home. Many businesses make the same mistake TNT might be making - focusing too much on stopping the obvious threats while missing the distributed scoring. I've walked into companies where they're so obsessed with their main revenue stream that they completely miss how other departments are contributing. When multiple players score an "avalanche of points" like San Miguel's distributed scoring, you need distributed analysis. That's precisely why learning how to use FA for better financial analysis and decision making requires looking at the complete picture, not just the headline numbers.

Can you share a real example where FA made a dramatic difference?

Absolutely. I worked with a manufacturing client last year that reminded me exactly of this basketball scenario. They were like TNT - focused on their star products while smaller product lines were quietly contributing 33% of their margin, much like how Trollano, Lassiter, and Tiongson combined for those crucial 33 points. When we implemented comprehensive FA techniques, we discovered that their "supporting players" - secondary product lines and services - were actually driving their profitability. This is the power of understanding how to use FA for better financial analysis and decision making - it reveals your hidden strengths and vulnerabilities.

What specific FA techniques deliver the best results?

In my experience, the most effective approach combines ratio analysis, trend examination, and comparative assessment - much like how a coaching staff would analyze both individual player stats and team chemistry. When I see Jericho Cruz leading with 23 points while supporting his teammates, I think about lead indicators versus supporting metrics. The 23 points are like your gross profit margin - important, but meaningless without context. The combined 33 points from three other players? That's your operating efficiency, cash conversion cycle, and customer retention rates working together.

How often should companies conduct serious financial analysis?

Here's my controversial take: if you're not doing some form of FA weekly, you're already behind. Think about it - basketball teams review every game, every quarter, every possession. When San Miguel demonstrates that "if this trend continues," TNT is in trouble, they're recognizing patterns in real-time. Your financial analysis should have the same rhythm. I recommend my clients establish what I call "financial timeout sessions" - brief weekly reviews complemented by deeper monthly analysis. This regular rhythm is essential for mastering how to use FA for better financial analysis and decision making.

What's the biggest benefit you've seen from proper FA implementation?

Without question, it's the confidence to make bold moves. Companies that truly understand their financial ecosystem can pivot like championship teams adjusting their strategy mid-game. When you see multiple players scoring consistently across different areas - whether we're talking about basketball or business units - you gain the assurance to make strategic investments, much like a coach trusting his bench players in crucial moments. The distributed scoring pattern we see with San Miguel - that's what financial health looks like in business terms.

Any final thoughts for businesses looking to improve their FA practices?

Start treating your financial data like a championship coach treats game stats. Look beyond the obvious stars. Find your Jericho Cruz equivalents - those unexpected performers driving value. Monitor your supporting metrics as closely as you track your primary KPIs. And remember what we're seeing in this basketball series: when multiple contributors step up consistently, it creates an avalanche of advantages that competitors simply can't handle. That's ultimately what learning how to use FA for better financial analysis and decision making is all about - building that comprehensive, distributed strength throughout your organization.