Profitability & Cash-flow projection through Business Simulations
Being able to project business & financial performance in an inherently uncertain environment is a key determinant of organizations' success in navigating through fluctuations in business cycles. Faced with changing market dynamics and evolving customer preferences, firms with effective & efficient projection frameworks are better-equipped to quickly arrive at critical strategic decisions with regards to product mix, capital structure, debt management, and capital investments.
An integrated user-friendly business simulation engine allows organizations to develop robust projections of their business & financial performance that accommodate variations in the sales cycle. A versatile profitability & cashflow projection solution allows firms to monitor the sensitivity of top-line & bottom-line performance to variations in the sales volumes, product mix, cost parameters, working-capital cycles, capex schedules, and debt management decisions. Ahead-of-time visibility into expected future performance enables optimal management decision making in the areas of business expansion, capital investments, leverage management, etc.
Model expected fluctuations in top-line performance based on sales volumes projections, by product-line and SKUs
Build in the stochastic nature of sales volumes, based on past volatility as well as the margin of error in sales projections
Calibrate the cost parameters, based on the bill of materials, factor inputs, fixed & variable cost mix, etc
Simulate various scenarios for cash conversion cycles and capex cycles
Model a range of debt management decisions and dividend distribution scenarios
Monitor the expectations of profitability and cash generation for the various scenarios fed to the model
Visually-appealing decision engine easily usable by a wide range of business end-users
Sensitivity tracking of variations in profitability and cash position with fluctuations in the sales cycle
Impact assessment of changes in the product mix on overall financial performance
Projection of cost-structure dynamics, working-capital management and capital investment decisions on bottom-line results
Ahead-of-time scenario modelling for various capital structure and financing decisions
Easy-to-use decision engine to guide managerial choices of product mix, capex schedules, debt management and dividend distributions
Corporate Finance Analytics
Cash Flow Modelling
SAS Visual Analytics
The solution is technology-agnostic, and available over a range of technology platforms. Choice of the best-suited platform for specific installations is governed by the existing ERP product being used by the client, in order to provide a cost-effective solution and to ensure seamless connectivity & integration. Open-source adaptations of the solution are also available to reduce the total cost of ownership for the client.