Definition:Scenario analysis is a method of predicting future values of portfolio investments based on potential events. In other words, it’s a method of estimating what will happen to portfolio values if a specific event happens or doesn’t happen. If this happens, then what?
Scenario planning and scenario analysis can help you strengthen your business decision making abilities; it can also help to sharpen your corporate strategic thinking. While scenario planning in business is becoming more popular; it has been used in military organizations or operations for a number of...
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What is ERP finance? Finance can be defined as the activities associated with the management and study of investments and money. Under the concept of money management in finance, the associated activities include issues touching on lending, borrowing, saving, budgeting, forecasting, investing, and ...
Cloud-based xP&A solutions connect people and unify data across core operational areas like finance, supply chain, HR, and sales. Basic steps in the FP&A process The FP&A process is a continuous cycle of data collection and analysis. As businesses grow and expand into new markets, and in ...
The purpose of the absolute ratio is to determine the liquidity of the business in the very short term (a few days). Using one current ratio or the other is really up to you, and it depends on the kind of analysis performed.
Don’t be afraid to dream big, but balance analysis of the biggest players with some that are closer to where your business is, too. 5. Get closer to your target audience. A good competitor analysis framework zooms in on your audience. It gives you a pulse of your customers by ...
Predictive analytics is the art of using historical & current data to make projections about what might happen in the future. Learn more for your business.
Understanding Quantitative Analysis Quantitative analysis (QA) in finance refers to the use of mathematical and statistical techniques to analyze financial & economic data and make trading, investing, and risk management decisions. QA starts with data collection, where quants gather a vast amount of fi...
A fundamental idea in finance is the relationship between risk and return. The greater the amount of risk an investor is willing to take, the greater the potential return. Risks can come in various ways and investors need to be compensated for taking on additional risk. For example, a U.S...