FINANCIAL ANALYTICS
Our Approach
Businesses typically have vast amounts of financial data but often do not turn this data into enough valuable information and then into insights. A business that is able to harness the full power of its financial analytics has a huge competitive advantage over its competitors. We have the financial, statistic and accounting skills in-house to help you achieve this.
Financial Statement and Management Account Analysis
Help management (especially non-financial managers) to read, interpret and understand the strategic implications of reported financial information. Understand how finance links to other aspects of strategy. This is typically done on a monthly, quarterly or annual basis depending on the business needs. Assist management to make informed business decisions based on this information.
Perform ratio analyses on the financial information to highlight:
a) the potential risks in the business
b) gain a deeper understanding of profitability.
Describe and explain the importance of the key financial ratios to management. Risk analysis includes liquidity, solvency and financial structural analysis; while profitability analysis includes analyzing profitability measures in detail as well as various forms of employed capital.
Common size analysis, horizontal and vertical analysis, analysis of variance is also performed on income and expense items across multiple financial periods to highlight and uncover trends and explain their business implications.
Sales Trend Analytics
Detailed sales analysis is used in working with sales teams to determine sales trends, composition of customer mix, profitability of various products and customer segments and the drivers of these factors.
This sales trend information is then used to help inform strategic sales efforts including which customer segments to target, potential areas for sales growth, the likelihood of winning in certain customer segments versus other segments of the market. This helps to focus sales resources and efforts to increase profitability.
Three and Five Year Financial Modeling and Forecasting
Review existing or create new 3 and 5 year financial models and forecasts. Assess assumptions, determine "what-if" scenarios and their impact on business profitability, free cash flows and value. Ensure that the model structure can be easily used to take account of changes in organizational and market dynamics.
Creation of Financial Dashboards and Metrics
Set up dashboards metrics and flags for directors and management to track performance of business units, subsidiaries and appropriate operations.
Appropriate metrics, roll-ups and time periods for monitoring are determined based on company specific needs and the degree of director / shareholder involvement.
