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Do you dread coming up with the numbers and trying to make the business case? I'll provide a spreadsheet that put everything in one place and allows you to try adjustments on the fly and observe the outcomes in real time. This session will make the financial justification a little less painful and you look a whole lot smarter.
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Financial Analysis to Knock Financial Analysis to Knock Your Executives Socks OffYour Executives Socks Off
Financial Analysis to Knock Financial Analysis to Knock Your Executives Socks OffYour Executives Socks Off
Larry McKeogh@lmckeogh
Example Financial AnalysisMacro View
Example Financial AnalysisMacro View
Example Financial AnalysisMicro View
Costs• Money paid out directly or indirectly in
support of the product or service on behalf of the organization– Labor– Time– Materials– Support– Marketing– Depreciation– Others?
Benefits
• Real or perceived points of entity value– Sales– Time saved– Quality improvements– Strategic– Few people– Others?
Financial Basics
• Pricing – How much does this “thing” cost– Sales Price or Revenue• Manufacture’s Suggested Retail Price (MSRP)• Price to channel• Actual or Average Sales Price (ASP)
– Cost Of Goods Sold (COGS)
• Profit Margin – usually discussed as a %• Gross• Net
Net Present Value (NPV)Compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account
Internal Rate of Return (IRR)• The break-even interest rate which equates the
Net Present Worth - NPW - (Net Present Value) of a project’s cash flow in and out.
The Spreadsheet10 tabs of related information
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