Planning Tools
Originally published: 24/08/2020 08:56
Publication number: ELQ-94973-1
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Planning Tools

Planning Techniques in Microsoft Excel

Description
This package include:

-Balance sheet as IFRS stander
-income statement as IFRS stander
-cash flow (direct and UN direct method )
-vertical and Horizontal analysis.

Horizontal analysis help analysts to see what has been driving accompany financial performance over a number of years .it enables analysts to assess relative change in different line items, and project them.and vertical analysis is a method to compare the financial statements in previous periods for time series analysis, in which annual figures are compared over a number of years to gain a picture of whether performance metrics are improving .

-Edward Altman Model:
A model that could be used for credit scoring ,witch use multiple discriminant analysis to identify businesses that might go bankrupt.Altman used financial ratios to predict
which firms would go bankrupt over the period 1946-1965.

Alman found that of the firms that went bankrupt over this time, 94 percent had z scores of less than 2.7 one year before bankruptcy and only 6 percent had scores above 2.7 percent conversely of those firms that did not go bankrupt, only 3 percent had z scores below 2.7 and 97 percent had scores above 2.7.

-The Dupont analysis:

A DuPont analysis is used to evaluate the component parts of company's return on equity (ROE) this allows an investor to determine what financial activities are contributing the most to the change in ROE.

-Capital Investment Techniques:

Any investment decision involves risk, because it deals with the future.
Investment appraisal techniques can help them to do choose the best option.:
The simplest method of investment appraisal this measures how quickly the returns from the investment cover the cost of the investment.

-ROA(Return on Assets):
ROA is a type of return on investment that measures the profitability of a business in relation to its total assets.

-Market acquisition ratio.
-Cash flow analysis.
-Ratio analysis.

This Best Practice includes
Excel Template

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