The following is a hypothetical scenario to demonstrate the power of the APM tool and offerings of Code Expert Canada Ltd. Code Expert helps you achieve verifiable productivity.
Paul and Helen are two Corporate Analysts with ABC Inc. Calgary based mid-size upstream oil sand company. The CEO of the company is worried about the lackluster operating result of the company for last five years. He asked Paul and Helen to create an earnings model for the next five years, which he will share with the market analysts. The share price is going down.
Equity researchers are flagging ABC as ‘Sell’ because they missed earning targets for five consecutive years. Paul and Helen are done with the economic analysis and in a position to start building the financial model. But, Helen has some other concerns about the assumptions. The reason is huge outstanding orders which are piling up year after year. The revenue of the company does not show the same trend. Revenue and earnings are slowly dropping.
Paul: Helen, I think your concern is for no reason. Having large amounts of outstanding order is always a good thing.
Helen: Paul, the company does not earn cash on outstanding orders, it earns when it delivers to the customers. I am concerned about our ability to deliver. I will talk to John before I make my mind.
Paul: But this is a Process issue, not financial.
Helen: It is an Operating Cash Flow issue. Operating Cash flow is the bread winner for the company and company’s value hugely depends on it.Big Data, Business, Data, Process Mining