Sensitivity Analysis

The SME and the bank have the ability to change Key Performance Indicators to identify the business impact of the change.

What is the impact of my business if revenue grows 6%?

As a bank or an investor it is important to spot the companies that produce cash and stay away from those that consume it. To determine whether a company is creating cash or consuming it we can conduct stress testing on revenue growth.  

Hypothetically grow the business and see if the business absorbs cash as it grows.

The problem is the banker needs to be able to isolate the financial impact that resulted from this change. This is easily performed by clicking on our net change button. 

What we are looking at now is the net difference between the original data set and the stress test data set. In other words the net difference.

This shows the impact 6% revenue growth on Cash Flow and Return on Capital Employed (ROCE).

Notice Revenue has increased 74,620 and Net Cash Flow has increased 150,716.