Financial SWOT analysis is a business analysis tool that helps to identify the financial Strengths, Weaknesses, Opportunities, and Threats of an organization. It’s an adaptation of SWOT analysis — which analyzes those same traits without a financial focus — commonly used in financial planning.

Let’s look at the four areas of SWOT analysis in depth:

• Strengths: These are things that play to a business’ benefit. In the case of financial SWOT analysis, this may include large cash reserves or positive monthly cash flow.
• Weaknesses: These are things that play to a business’ detriment. For financial SWOT analysis, examples include lots of debt or negative monthly cash flow.
• Opportunities: These are things which could benefit the business, but do not currently. Financial examples include possible cash investments or new revenue streams.
• Threats: These are things which could disadvantage the business, but do not currently. Examples of financial SWOT analysis include non-paying customers or interest rate hikes.