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.

Key Features

  • 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

Business Benefits

  • 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

Analytics Backbone

  • Corporate Finance Analytics
  • Profitability Modelling
  • Cash Flow Modelling
  • Scenario Analysis
  • Sensitivity Analysis
  • Visual Analytics
  • Exploratory Analysis

Technology Variants

  • Tableau
  • Qlik View
  • SAS Visual Analytics
  • SAP Lumira
  • Oracle
  • R

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.

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