Magnimetrics Library
Practical finance, Excel, valuation, and FP&A articles with downloadable working files where relevant.
Microsoft Excel is an essential tool for many businesses, but few fully utilize its automation capabilities to streamline repetitive tasks. You can use macros to automate almost any actions you typically perform manually in Excel. This can often result in substantial time savings from mundane business tasks. It can also significantly improve accuracy by minimizing […]
In the ever-evolving landscape of financial planning and analysis (FP&A), we succeed by mastering existing skills and continuously learning and improving. FP&A professionals play a crucial role in driving business growth and informed decision-making. To excel in this dynamic field, embracing a mindset of continuous learning and improvement is essential. This article will explore the […]
With a reach in e-commerce, cloud computing, digital streaming, and artificial intelligence, Amazon is now one of the largest corporations in the world. Analysts often refer to it as one of the most influential economic forces in the world. Alongside Google, Microsoft, and Apple, Amazon is considered one of the Big Four tech companies. In […]
Introduction to Sensitivity Analysis We apply Sensitivity Analysis to a financial model to determine how different values of an independent variable affect a specific dependent variable under a given set of assumptions. We also refer to it as ‘what-if’ or simulation analysis. Performing such analysis helps us predict better the outcome of a decision, based […]
Introduction to the Economic Value Added (EVA) The EVA (Economic Value Added) is an indicator of profitability and a measure of financial performance, based on residual wealth. It is the excess profit above the cost of capital, generated by the business, adjusted for taxes, and presented on a cash basis. The consulting firm Stern Value […]
Today we will take a look at Cost-Volume-Profit (CVP) analysis and the Break-even point (BEP) in sales. Cost-Volume-Profit Analysis The Cost-Volume-Profit (CVP) analysis is a method of cost accounting. It looks at the impact of changes in production costs and sales on operating profits. Performing the CVP, we calculate the Break-even point for various sales […]
Businesses use financial metrics to measure their performance over time. One such metric is Days Working Capital (DWC) which shows us the number of days the company takes to convert working capital into sales revenue. Many investors use DWC as a liquidity indicator to track working capital management efficiency. In this article, we explore some […]
Learn to build a comprehensive cash flow model in Excel, enabling effective tracking and forecasting of your business’s financial health.
A covenant is a promise that restricts or impairs the ability of one party to act in some way. When a company raises debt, it is usually subject to conditions, restrictions, and terms known as debt (or financial) covenants. The purpose of debt covenants is to protect creditors by ensuring that borrowers act responsibly and […]
Financial Ratio Analysis is a form of Financial Statement Analysis that we use to obtain a quick view of the financial performance of a company in critical areas. Ratios can be used to compare one company against another or one period against another.  To compare different companies, we use Common Size Statements, where we express […]
