Normalized Financial Statements

Definition

Normalized financial statements are financial statements that have been adjusted to show a company’s financial performance under normal or typical conditions, and to exclude any unusual or one-time events that could affect its financial results in a given period. This provides a more accurate picture of the company’s underlying financial performance and can be used for financial analysis, forecasting, and valuation. Normalized financial statements are a useful tool for investors and analysts to make informed investment decisions and evaluate a company’s financial health.

Further Explanation

Normalized financial statements are financial statements that have been adjusted to reflect a company’s financial performance under normal or typical operating conditions, and to exclude any unusual or non-recurring events that may have affected its financial results in a given period.

The adjustments made to normalized financial statements can include items such as one-time charges or gains, restructuring costs, write-downs of assets, and other non-recurring events that are not expected to affect the company’s future earnings. By excluding these items, normalized financial statements provide a more accurate picture of a company’s underlying financial performance and can be useful for comparing its results to other companies in the same industry.

Normalized financial statements can be used for a variety of purposes, including financial analysis, forecasting, and valuation. By providing a more consistent and stable measure of a company’s financial performance over time, normalized financial statements can help investors and analysts to make more informed investment decisions and to identify trends and patterns in a company’s financial results.

Overall, normalized financial statements are an important tool for evaluating a company’s financial health and for making informed investment decisions based on its underlying financial performance.

Why Appoint Valtech as Valuation Adviser?

Valtech’s team has provided valuation advice to over 200 listed companies in Hong Kong, China, Singapore, Taiwan, Australia, the United Kingdom, the United States and Germany.

Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The financial market and valuation requirements are highly dynamic. We are determined to develop and maintain a quality management system to foster an environment which is sustainable and evolving continuously. Our founders stress on development of a system and an environment that our consultants are provided with necessary support and opportunities to thrive.

We are a team of professionals from multiple disciplines including audit, financial modelling, tax, internal control and surveying. Our management adheres professional excellence. Abundant resources are reserved to develop standardized policies and procedures for quality control. We have solid track record in valuation advisory for listed companies, private equity, fund managers and financial institutions. We work closely with big four and other international accounting firms, corporate financial advisors, fund managers and legal advisors.

Valtech Advantages:

Advanced Valuation Techniques: Valtech Valuation can develop and implement advanced valuation techniques that are specifically tailored to the needs of clients. These techniques can go beyond traditional valuation methods and incorporate factors such as market trends, industry benchmarks, and risk analysis to provide more accurate and insightful valuations.

Customized Valuation Models: Valtech Valuation can create customized valuation models that align with the unique investment strategies and asset classes. By understanding the specific requirements and objectives of these entities, Valtech Valuation can develop models that capture the nuances of their portfolios, resulting in more precise and relevant valuations.

Data-driven Insights: Valtech Valuation can leverage its access to comprehensive data sources and analytics tools to provide data-driven insights. By analyzing market data, economic indicators, and performance metrics, Valtech Valuation can offer valuable insights into the valuation of assets, identify emerging trends, and help inform investment decision-making.

Adherence to Compliance and Reporting Standards: Valtech Valuation can ensure that valuation practices adhere to regulatory compliance and reporting standards. By staying updated on relevant regulations, such as accounting standards and industry guidelines, Valtech Valuation can help clients meet their reporting obligations accurately and in a timely manner.