FinanceIsland's tools are designed to be self-explanatory. Each tool includes a set of tool tips providing guidance throughout the analysis process. Should you, however, need additional support, please consult the FAQs and following resources. GLOSSARY & TUTORIALS FINANCE GLOSSARYDefinitions of finance terms used throughout FinanceIsland's tools Tutorial: BASIC STATISTICS Overview of key statistics concepts used across some of FinanceIsland's advanced analysis tools, covering among others the mean, standard deviation, histograms, and probability distributions Tutorial: MONTE CARLO SIMULATION Introduction to Monte Carlo simulation describing how it can help reducing uncertainty in business decisions by modelling possible outcomes of metrics such as net present value (NPV) or sales forecast Tutorial: RISK & CAPITAL ASSET PRICING MODEL (CAPM) How CAPM, one of the pillars of corporate finance, and FinanceIsland's risk matrix can help to compare financial investments by using project-specific discount rates Tutorial: LEASE OR BUY Companies have usually several options when acquiring capital equipment. This tutorial looks at these options and shows how to take all relevant cash flow drivers into account to arrive at the best lease-or-buy decision. BLOG POSTS The funny thing about ROI: definition of return on investment (ROI), introduction to present value, how to approach ROI calculations Time value of money: first basic principle of finance, definition of net present value (NPV) A safe dollar is worth more than a risky one: second basic principle of finance, how to correctly compare safe and risky investments Why NPV rocks: comparison of NPV against three alternative investment criteria: profitability index, payback period, and internal rate of return (IRR) Back to basics: from sales to profit: review of profit & loss (P&L) or income statement, how a company transforms sales into profit Cash is king: importance of cash for the fiscal health of a business, interrelation between cash and accounts receivable, accounts payable, and inventory From income statement to cash flow: how to translate net income into cash flows using days sales outstanding (DSO), days payables outstanding (DPO), and inventory turns (Almost) crystal ball: Monte Carlo simulation: introduction to Monte Carlo simulation and its benefits and limitations Risk analysis: risk analysis simplified and dissected