Financial analysis in your business » News http://www.financeisland.com/blog Mon, 01 Nov 2010 19:50:49 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 New finance apps with Monte Carlo simulation http://www.financeisland.com/blog/2010/08/new-finance-apps-with-monte-carlo-simulation/ http://www.financeisland.com/blog/2010/08/new-finance-apps-with-monte-carlo-simulation/#comments Mon, 30 Aug 2010 06:53:19 +0000 Jack Lampka http://www.financeisland.com/blog/?p=134 FinanceIsland has just launched three new finance apps with Monte Carlo simulation. Ten years after the idea was born, three years after the technology became available, two years after first proof of concept, and one year after the development and testing cycle, we are ready. These three new tools represent the first implementation phase of [...]]]> FinanceIsland has just launched three new finance apps with Monte Carlo simulation. Ten years after the idea was born, three years after the technology became available, two years after first proof of concept, and one year after the development and testing cycle, we are ready. These three new tools represent the first implementation phase of our vision to offer sophisticated online finance applications to manage uncertainty.

The first new tool, ROI analysis with Monte Carlo simulation, is divided into two parts: standard ROI analysis and Monte Carlo simulation. This tool allows you to calculate the return on investment (ROI) that you can expect from a R&D, marketing, or capital investment project. The tool will tell you also how likely it is that the investment will have positive return. The tool will perform discounted cash flow analysis, it will calculate key ROI metrics such as net present value, and it will allow you to model uncertain projections using Monte Carlo simulation.

The second tool, cash flow forecast, can help you to predict future cash flows expected in your business and can help you to determine the likelihoods of these cash flows. The tool will calculate income and cash flow projections, it will help you to identify most relevant drivers of cash flows using the sensitivity chart, and it will allow you to model uncertainties in financial flows using Monte Carlo simulation.

The third new tool is the optimal supply estimator. If you need to order or produce fixed number of products well in advance of the time when these products will be sold, this tool will help you to identify the optimal order or production quantity. It will help you to maximize margin based on the uncertain demand by calculating contribution margin for several supply options and by modeling uncertain demand (and price) with Monte Carlo simulation.

In addition to the new apps, we have also slightly redesigned the existing lease-or-buy calculator. This tool can help you in deciding between leasing and buying capital equipment, and if buying between cash and financed purchase. The tool will calculate the total cost of leasing and buying where you will be able to choose the least expensive lease-buy option based on discounted cash flow analysis and net present value.

All these tools are ready to use. They are supported through guided and simplified analysis processes. And they are delivered to you online as a service, so you can instantly benefit from new features we add on a regular basis. The only technical requirement is a newer internet browser with Flash version 10 or higher installed.

All tools are offered on a subscription basis. For more information please check the pricing page or subscribe directly.

]]> http://www.financeisland.com/blog/2010/08/new-finance-apps-with-monte-carlo-simulation/feed/ 0 Hello world! http://www.financeisland.com/blog/2009/10/hello-world/ http://www.financeisland.com/blog/2009/10/hello-world/#comments Fri, 02 Oct 2009 12:30:59 +0000 admin http://www.financeisland.com/blog/?p=47 Here is the team from FinanceIsland Inc. We have launched this blog to discuss financial analyses in businesses. Our focus is on finance, not accounting. To simplify the distinction, accounting activities – such as bookkeeping, auditing, and taxation – are backward-looking. Finance activities, on the other hand, are forward-looking, covering topics such as investment analysis, [...]]]> Here is the team from FinanceIsland Inc. We have launched this blog to discuss financial analyses in businesses. Our focus is on finance, not accounting. To simplify the distinction, accounting activities – such as bookkeeping, auditing, and taxation – are backward-looking. Finance activities, on the other hand, are forward-looking, covering topics such as investment analysis, resource allocation, and cash flow projections.

Due to its forward-looking nature, financial analysis requires projections of the future. Projecting the future is of course full of uncertainty, so any analysis of the future needs to address this uncertainty. We will cover here how this uncertainty can be managed by discussing topics such as Monte Carlo simulation and real options.

This blog is intended for anybody involved in financial analysis at any type of business. This can range from business decision makers in smaller firms, who rely on financial analyses to support their decisions, to financial analysts at larger companies, who perform these analyses.

Contributors to this blog will be the FinanceIsland team. FinanceIsland is a company providing online financial analysis tools ranging from quick ad hoc calculations to advanced analysis techniques. The company was founded by financial analysts and controllers who have applied corporate finance and statistics principles in their finance careers at small and large companies. You can find more information about FinanceIsland by following the links on top of this page or simply checking our About us page.

We hope you will find this blog valuable. And we are looking forward to your comments.

FinanceIsland Inc

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