A retail firm came to Nash Analytic with questions about the future. How can we start forecasting our growth and create a window into future development?
OUR APPROACH:
This question is a pretty common one and most firms find themselves looking for answers through analytics. The best way to predict the future is to look at the past. The best way to see the history of a company is through it’s financial statements. These statements can give great insight into what the company has been doing with capital, where costs lay, and how profits are performing.
We use this firms balance sheet, income statement, and cash flow statement to create a linked 5-year forecast model. Why these statements? They hold the most important information about the company. The income statement will show us revenue and expenses. The balance sheet will tell us how accounts payable and receivable are doing. And the cash flow statement will tell us where the money is going. With all of this, we can create our forecast model and tell our client not only what the future of their business will look like in the years to come but also how they look now. How has the business been performing?
THE RESULTS:
Delivering the model and proper training to finance team has the firm confidently looking into the future. They use this and several key ratios to continue to track the growth of the firm. It is a key item in monthly discussions and has allowed the finance team to answer several business questions concerning capital expenditures and expansion. The firm has expanded with 2 more locations and hit the targeted growth rate in 2 years of the new implemented model.
Nash Analytics strives to satisfy our clients' needs and bring to light all the opportunities and challenges a firm might be facing.
“The insight Nash Analytic gave us has changed
our strategy and we know what levers to
pull to get the growth we are looking for.”