Basics of Financial Analytics

1. Basics of Financial
Analytics
Prepared by: B-39 Juee Jadvani

2. Highlights
● Introduction
● Core capabilities of financial analysis
● Need of Financial Analytics in Business
● Predictive Sales Analytics
● Cash Flow Analytics
● Product Profitability Analytics
● Application of Analytics in Financial Process

3. Introduction
● Financial analytics, provides differing perspectives on the
financial data of a given business, giving insights that can
facilitate strategic decisions and actions that improve the
overall performance of the business.
● Financial analytics is a subset of BI & EPM(Enterprise
Performance Management) and has an impact on every
aspect of your business.

4. Core Capabilities of Finance Analytics
To ensure their departments are data-driven, CFOs should work
with IT to embark on a phased journey toward a simplified finance
systems architecture that eliminates redundancy, leverages
integration and maximizes automation

5. Need of Financial Analytics in Business
Financial analytics helps a business to
● Understand the performance of an organization
● Measure and manage the value of tangible and intangible assets
of an organization
● Manage the investments of the company
● Forecast the variations in the market
● Increase the functionalities of information systems
● Improve the business processes and profits

7. Predictive Sales Analytics
Predictive sales analytics uses sales data to identify patterns in
customers’ and leads’ behaviours to make future sales predictions.
Hence, you can better understand your business’s financial health
for the months or years to come.
Importance:
1. Increase the Accuracy Level of Sales Forecasts
2. Improve Lead Generation
3. Maximize Customer Lifetime Value

8. Cash Flow Analytics
Cash flow analysis helps you understand if your business is able to
pay its bills and generate enough cash to continue operating
indefinitely
Successful businesses care for extensive cash flow predictive
analytics planning. Mature finance teams following best practices
review everything on a regular basis to see what actually
happened versus what they said would happen

9. Cash Flow Analytics
1. Data consolidation from various profit centers and book took
significant time.
2. Real-time analytics on various key performance indicators was
inefficient, not accurate, it took significant time to match the
numbers. There was no way to identify anomalies, patterns.
3. Solutions available were typical dashboards power of data
mining was advance analytics not built within.

11. Product Profitability Analytics
● Understanding product profitability is one of the most vital
insights business leaders need for steering their firms in the right
direction.
● Knowing which products are most profitable can help them
allocate their resources to their best advantage.
● From predicting the cost-effectiveness of new products to
optimizing that of existing ones, this exercise gives them a clear
picture of which products they must scale and which to trim
down.

12. Product Profitability Analytics
Determining product profitability demands effective measuring of
factors like:
● cost of goods sold (COGS)
● Logistics
● Discounts
● product combinations
● sales commissions, etc.

13. Application of Analytics in Financial Process
1. Financial Analysis Predicts Sales
2. Cash Flow Analysis
3. It Shows the Profitability with Specific Demographics
4. Determine which Products are Profitable
5. Laser-Focused Revenue Projections
6. Eliminating Major Unnecessary Expenses
7. Improving the Efficiency of Supply Chains

14. Thankyou