Magnimetrics Library
Practical finance, Excel, valuation, and FP&A articles with downloadable working files where relevant.
Today we will take a more detailed look at Variance Analysis. In this article, we will deal with the theory, and in next week’s article, we will build an Excel model to look more practically at the subject. Variance Analysis Variance analysis looks at the differences between planned and actual numbers. This method is used […]
It was 1912, and Donaldson Brown was working as an explosives salesman for the DuPont Corporation. About that time, the company treasurer John Raskob brought him into the financial activities of the company and encouraged him to use statistics to evaluate the business performance of the various activities under the DuPont corporation. Pierre du Pont, […]
Today we are looking at a more complex financial analysis model – the Altman Z-Score Analysis. But I promise, there’s a reward at the end of the article. The Z-score formula for predicting bankruptcy was published in 1968 by Edward Altman, Assistant Professor in the field of Finance in the New York University. In the […]
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 […]
Today we will take a brief look into the most commonly used types of Financial Analysis. We will see some examples but will not go into detail for each method. This article aims to show you the vast techniques you can apply when doing financial analytics. Hopefully, after reading it, you will be better equipped […]
In today’s article, we will look at what Financial Analysis stands for, how to perform it and, most importantly, why it is essential for businesses. What is Financial Analysis? If you google the definition, what you get is something along the lines of Financial analysis is the assessment of the profitability, stability, and viability of […]
