Customer Churn Analysis in Excel

Customer Churn is one of the most essential metrics for any company with a subscription-based model. It shows the rate at which customers are leaving and switching their subscriptions to someone else. It’s paramount to understand and analyze churn, as even a slight increase in the churn rate can have devastating effects on our business. […]

Understanding Customer Acquisition Cost (CAC)

One of the reasons businesses fail is a wrong estimate of how much it will cost to acquire customers. If the cost ends up too high and exceeds the monetization of the customers, the business cannot operate sustainably. It is essential to understand how much a customer will generate for the business, as knowing this […]

Economic Value Added (EVA) Case Study: Nestlé S.A.

If you haven’t read the article on the Economic Value Added (EVA) metric, please, take a look here, before you read on. Introduction In today’s post, we are doing a short case study, trying to calculate the Economic Value Added (EVA) for Nestlé for FY 2018, using actual data available in the public domain. Nestlé […]

Breaking down the Economic Value Added (EVA) Calculation

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 […]

DuPont Model for Business Analysis

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, […]

Financial Ratios Analysis

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 […]