Financial Sensitivity Analysis: ChangeBoard User Manual

The Financial Sensitivity Analysis is discussed in several places, under the heading ChangeBoard.
Go to the ChangeBoards Introduction for more information.

The data for the Sensitivity Analysis is added under the menu heading, Financial CB (for ChangeBoard).

12Faces have other types of ChangeBoards that appear in association with, for example, Sales data.

Enter the figure for a relevant period for Gross Profit and Operating Profit. When choosing a relevant period, take into account data that gives you a realistic result.

Consider the following examples:

• If your data is highly seasonal, for example, tourist or Christmas, you may not want to use this data. Instead choose an average period.
• You can choose a monthly period if you wish. But given that your months can be quite volatile, it may be better to settle on a quarter. It would certainly be safe to settle on an annual, but if you are a growing company, your annual figures will be behind the times. That is depending on the time of the year.
• The “%” change that you enter can be any figure that you like. Ideally, it is a figure that you think is achievable in the next accounting period. If you are working in quarters, it might be by how much you can increase Revenue and/or Gross Profit and/or Operating Profit in the course of the quarter. Each of them get the same % change figure.

There is only one line of data required for your Financial ChangeBoard input. Additionally, you can look at this in the Financial CB report and overwrite those figures when you want to make changes. For example, for the next quarter.