Broker Check

Financial Analytics Scorecard

For Each Section, if You Scored a...


You may have this section well-handed!


It appears that you have a strong grasp of this section!


You have some solid knowledge here, yet may benefit notably with some added financial insight.

2 or Lower

There is significant opportunity to impact your financial situation in this area!

Impacting the Bottom Line

1. When I have sales growth, I can tell how much profit is attributable to revenue growth versus margin management.

2. When looking at my Income Statement, I am clear on which line item improvements would have the greatest impact on profitability.

3. I can confidently tell from my financial statements how employee productivity is changing over time.

4. I have a set of key sales ratios to help me measure our progress.

5. I know how my margins compare to similar companies in my industry.

Score A: 0 of 5

Cash Flow is King

1. When looking at my balance sheet, I am clear on what accounts could have the greatest impact on cash flow.

2. I know how much cash it took to finance my sales growth last year.

3. I maintain enough working capital to mitigate liquidity issues.

4. I know how to calculate my cash conversion cycle (how many days until a dollar deployed in my business comes back for redeployment).

5. I can calculate my sustainable growth rate

Score B: 0 of 5

Enterprise Value: the Ultimate Scorekeeper

1. I completed an enterprise valuation using accepted valuation methods in the last 12 months.

2. I utilize an enterprise valuation each year to measure progress.

3. I have a good understanding of which specific operating changes will directly impact my company’s value.

4. I know the key risk factors others would consider when evaluating my business for sale.

5. I have positioned the business to maximize the transferable value.

Score C: 0 of 5

My Line of Sight into the Future

1. I have a working model that I use at least annually to see how my business will generate and consume cash over the next three years.

2. Each year, our team forecasts our margins, cash needs, debt capacity, and enterprise value for at least the next three years.

3. I run a three-year forecast on the impact of major growth or cash commitments before making decisions

4. My team runs a forecast model in advance on the impact of significant financial strategies.

5. We run forecasting models to see the impact on enterprise value several years out.

Score D: 0 of 5

Assessing My Cost of Capital

1. I know how to position my company to receive the most competitive lending rates from banks.

2. I know at what rate of growth I will outstrip my capacity to fund operations internally, and will have to seek outside capital.

3. I know how specific changes in business operations can impact my return on equity.

4. My team annually conducts collateral analysis, cash flow reviews, and leverage metrics to determine how lenders might view our loan risks.

5. I know the key ratios lenders use to assess my debt capacity.

Score E: 0 of 5

The Sale of My Business Will Define My Future

1. I know how much capital I need to last me throughout retirement.

2. I have a roadmap to build enterprise value to meet my retirement needs.

3. My company has a documented succession plan with appropriate funding mechanisms in place.

4. I have the information to be able to identify when the timing is right to consider a transfer of the business for maximum gain.

5. I feel confident that I have a forecasting model that will assist me when I plan on retiring.

Score F: 0 of 5