FINANCIAL ANALYSIS

The Barts and the London NHS Trust

The Barts and the London NHS Trust

Part I

Every business plan should contain a section on projections financial forecast due to the economic and financial future of the company regarding its operations. Financial forecasting is an activity for the foresight and strategic assessment of the prospects of development finance, volume, composition and structure of financial flows and directions of their use. Also through the financial projections can be generated various scenarios in which the business can vary, with different estimates of the performance, allowing the entrepreneur to identify possible risks that may impact your business and implement strategies to cushion the negative effects. Therefore, analysing about the financial projection for The Barts and the London NHS trust it is necessary to know about the uses and financial projection techniques available to the management of the hospital. To demonstrate the reliability and stability of the project in the face of funding from third parties (banks, credit institutions, State, etc). The projected financial statements is central to the world business, particularly in small and medium enterprises why when it is shown that there is a business opportunity more feasible to acquire the resources needed to undertake the project (Mock, 1967).

The duration of the financial projections depends on the type of business and market, in which the activity takes. So, in cast of the Barts and the London NHS trust the projection will be of long term period. In mature markets and stable projection periods are more extensive, since they must cover a period so large that a complete picture of business and activity. So, the hospital projection will be over 8 to 10 years (Niemira & Klein, 1994). There for the projection for hospital will be based on the results of compilation of financial forecasting, which is a system of evidence-based assumptions about the possible directions of future development and the financial system, its separate spheres, and the subjects of financial relations. This forecasting provides an opportunity to consider various options for development finance, such as favourable, average and worst-case scenarios of economic development, business entity, market conditions, etc (Mock, 1967).

The hospital management should support their financial projections and analysis realistic figures on the environment, industry, competitors, customers, etc. Since the resolution of these questions the management will have a starting point to begin to make projections about the projections taking into account different aspects which might affect the projections. This includes the macroeconomic aspects, sector, business and historical evolution. The financial projections should be accompanied by a report explain the hypothesis raised by the model, so that check the consistency of the projections. Sales are a significant departure in the financial projections, because which is the starting point for developing the income (Niemira & Klein, 1994).

The management of hospital should undertake market research, have a customer focus, and be flexible and realistic changes in demand. If the projected growth rates are higher than the projections the sector, then there should be the reasons ...