Do you dread coming up with the numbers and trying to make the business case? I'll provide a spreadsheet that put everything in one place and allows you to try adjustments on the fly and observe the outcomes in real time. This session will make the financial justification a little less painful and you look a whole lot smarter.

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2. Financial Analysis to KnockFinancial Analysis to Knock
Your Executives Socks OffYour Executives Socks Off
Larry McKeogh
@lmckeogh

5. Example Financial Analysis
Macro View

6. Example Financial Analysis
Macro View

7. Example Financial Analysis
Micro View

8. Costs
• Money paid out directly or indirectly in
support of the product or service on behalf
of the organization
– Labor
– Time
– Materials
– Support
– Marketing
– Depreciation
– Others?

9. Benefits
• Real or perceived points of entity value
– Sales
– Time saved
– Quality improvements
– Strategic
– Few people
– Others?

10. Financial Basics
• Pricing – How much does this “thing” cost
– Sales Price or Revenue
• Manufacture’s Suggested Retail Price (MSRP)
• Price to channel
• Actual or Average Sales Price (ASP)
– Cost Of Goods Sold (COGS)
• Profit Margin – usually discussed as a %
• Gross
• Net

11. Net Present Value (NPV)
Compares the value of a dollar today to
the value of that same dollar in the future,
taking inflation and returns into account

12. Internal Rate of Return (IRR)
• The break-even interest rate which equates the
Net Present Worth - NPW - (Net Present Value)
of a project’s cash flow in and out.

13. The Spreadsheet
10 tabs of related information

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