The Heart of a Financial Model

Think of your business as a jigsaw puzzle, and financial models as those pieces that complete the picture.

Sound lame to you? Maybe. But please, try to actually visualize this. It's important.

Financial Models are made with the intention of connecting the puzzle pieces (information the user needs) with your business and answer any questions the user has. Whether they know it or not.

financial models help you see hidden treasures in your business data.

Financial models aren't just about crunching numbers. They give you a real-time peek into your company's wallet while also giving you an analytical way of understanding 'how's the business doing?'

Plus, they're meant to update like magic – highly adaptable in adapting the most up to date information to digestible KPIs that help you execute the vision of your company and role at an organization.

Metrics for the CFO:

• Cash Flow Forecast: It's your crystal ball for predicting cash needs and ensuring your wallet's never empty.

• Return on Investment (ROI): Like your trusty calculator, it helps you see if your investments are paying off.Working Capital: Think of it as your piggy bank, making sure you have enough spare change.

• Debt-to-Equity Ratio: It's like a fitness trainer for your finances, telling you if you're carrying too much weight.

• Earnings Before Interest and Taxes (EBIT): This one's your heart rate monitor for business health.

• Accounts Receivable Turnover: It's like tracking how quickly your friends return the money they owe you.

• Budget Variance: Imagine it's your financial compass, helping you stay on course.

Metrics for the President/CEO:

• Revenue Growth: It's like your business's height chart, showing how much it's grown.

• Market Share: Think of it as your company's popularity rating in the industry.

• Customer Acquisition Cost (CAC): It's your detective tool for finding out how much it costs to make new friends (customers).

• Customer Lifetime Value (CLV): Like your crystal ball for seeing the future value of your customers.

• Net Promoter Score (NPS): It's like a happiness meter, measuring how much your customers love you.

• Employee Satisfaction (eNPS): Think of it as your company's mood ring, showing you how your employees feel.

• Return on Assets (ROA): This one's like checking your overall health to see if you're fit and fabulous.

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• In the ever-evolving world of business, financial models are your trusty sidekicks and truly juice the heart of a business. They not only act as the heart of a business, but are made with true care and with intention to solve the potential problems of a user. Financial Models are just tryna help you out, let them! 😁