Financial modeling

A clear profitability analysis of your recurring customers or your most important projects is a crucial tool for the entrepreneur to identify which activities add the most value. As a business manager, these analyses help you make strategic decisions about pricing, customer segmentation and how to allocate resources and people. We can enrich this by using methods such as full costing and activity-based costing, which provide a more detailed insight into how costs are generated and allocated within the company, providing a more accurate picture of profitability.

Investment analysis and return analyses are also essential for assessing (the potential financial benefits of) new projects and investments. By using techniques such as net present value (NPV), internal interest rate (IRR) and payback period, companies can compare expected returns with investment costs and decide which projects offer the best financial returns. Not only do these methods help make capital allocation decisions, but they also enable a company to manage risk by choosing the investments that best suit their strategic goals and risk tolerance.

Cash flow modelling and sensitivity analyses, on the other hand, provide insight into the liquidity position and show how sensitive it is to changes in market conditions. Cash flow modelling helps predict future cash flows and plan necessary expenses to keep operations running smoothly. Sensitivity analyses add an extra layer of insight by illustrating how different scenarios, such as changes in interest rates, commodity prices, or market demand, can influence a company's cash flows and thus the viability of a company. Together, these tools provide a robust basis for strategic planning and risk management.

Essentially, all models are wrong, but some are useful.

A selection of our offerings

Profitability analysis of customers or projects: As an entrepreneur, we bring you a deeper insight into the profitability of your revenue and cost flows so that you can focus on the most lucrative aspects of your business.

Investment analysis: Together, we look at the costs of R&D opportunities, possible investment decisions and other growth-oriented expenses and find out which option provides the most return.

Cash flow modelling: We project your company's future cash flows from the perspective of financial planning and liquidity management.

Sensitivity analyses: If desired, we investigate how the different inputs in a model influence the outcomes under changing circumstances.

Performance analyses: We investigate the return of an investment or project using methods such as net present value (NPV) and internal interest rate (IRR).

Ratings: Based on financial data and market conditions, we use methods such as Discounted Cash Flow (DCF) to estimate the company's economic value.

Full Costing & Activity Based Costing: We use standard methods to allocate all direct and indirect costs to products or services; where full costing distributes costs evenly, while activity-based costing assigns costs based on the actual activities that generate them.