Category: Consulting

Consulting

Monte Carlo simulation for liquidity forecasts

Forecasting the liquidity of a company is an important task for financial analysts, investors, and management. It helps to understand the financial health of the company and its ability to meet its financial obligations in the short and long term. The step-by-step approach One way to forecast liquidity is through the use of Monte Carlo simulations. In this article, we will describe a step-by-step approach for using Monte Carlo simulations for this purpose and discuss the pros and cons of this method. Step 1: Gather data on the company’s financials and assumptions about future performance To begin, you will need […]

Consulting

Financial dashboards

Financial dashboards for decision making Financial dashboards are tools that allow businesses to visualize and monitor key financial metrics and indicators in real-time. They are useful for decision-making because they provide a high-level overview of a company’s financial performance and allow executives and managers to quickly identify trends, patterns, and opportunities. Hands-on example In the automotive industry, financial dashboards can be particularly useful for tracking key metrics such as sales revenues, expenses, profitability, and cash flow. For example, a company in the automotive industry might use a financial dashboard to track the sales of different vehicle models, the costs of […]

Consulting

ARIMA for financial forecasting

Handling large historical datasets Financial forecasting is the process of predicting future financial performance based on past and present data. It’s an essential tool for businesses of all sizes, as it helps to inform decision-making and plan for the future. One of the most commonly used methods of financial forecasting is the AutoRegressive Integrated Moving Average, or ARIMA. So, what is ARIMA and how does it work? At a high level, ARIMA is a statistical model that is used to analyze time series data, such as sales figures or stock prices. It’s a flexible model that can be used to […]

Consulting

AI in restructuring

Artificial intelligence Artificial intelligence (AI) has the potential to revolutionize the process of restructuring opinion by providing companies with faster, more accurate, and more comprehensive insights into the feasibility and potential outcomes of restructuring plans. Use cases One way that AI can be used for restructuring opinion is through the use of machine learning algorithms. These algorithms are able to analyze large amounts of data and identify patterns and trends that may indicate the potential success or failure of a restructuring plan. For example, a machine learning algorithm might be trained to analyze the financial statements of a company and […]

Consulting

Restructuring opinion (IDW S6)

Improve its financial performance and future prospects A restructuring opinion is a professional opinion provided by an accountant, lawyer, or other experts on the feasibility and potential outcomes of a restructuring plan. Restructuring refers to the process of reorganizing a company’s operations, financial structure, or business model in order to improve its financial performance and future prospects. There are many different reasons why a company may consider restructuring, including financial difficulties, changes in market conditions, or the need to adapt to new technologies or business models. Regardless of the reason, restructuring can be a complex and risky process, and it […]