Global CFO 2010: A Powerful Financial Assessment Tool for Business Owners and Advisers. New for 2010 – Improved Navigation, Security, and additional features, including Z-Score (predicts likelihood of bankruptcy)
“You don’t have to be a financial genius to manage like one!“
For most people, financial statements are simply a record of sales and expenses. But with the proper knowledge and tools, financial statements can tell a detailed story about how a company is managed.
Global CFO not only gives you the tools you need to analyze your company’s financials, but also provides basic training to help you understand them. Global CFO teaches you about various financial ratios, how they are calculated, and how they affect your business. Once you understand those things, you can then create and implement a game plan to improve those ratios, which will in turn improve your business.
The “Income Statement” tab shown below takes you to the income statement that Global CFO automatically generates for you.
The “Growth Rates” tab shown below tells you how much each line item is growing (or shrinking) from year to year. Global CFO flags all expense categories that are growing faster than sales and highlights them in red. (Expenses should regularly be kept in check. A business will not survive for long if its expenses grow more quickly than sales.)
The “Pro Forma Income” tab takes you to your company’s projected income statement. The green cells beneath the “Customize your Growth Assumptions” heading show the projected growth rate of each line item based on historical trends, and the white cells allow you to input your own customized growth rates. Global CFO can produce pro forma income statements based on projected growth rates, your own customized growth rates, or any combination thereof. If you want to use your own customized growth rate for any particular line item(s), simply check the box next to the line item(s).
The “Key Ratios” tab summarizes certain key financial ratios of your company. This tab also compares your company’s ratios with those of the industry as a whole. You may need to conduct a bit of research to be able to get an accurate comparison, but this comparison can tell you quite a bit about how your company compares to your competitors now, and how your company is projected to compare in the future.
The “Definitions” tab teaches you about all of the ratios that Global CFO uses to evaluate your company, tells you whether the ratio should be high or low, and tells you whether the ratio for your company is moving in the right direction.
The “Dashboard” tab shows you your company’s financial trends through multiple graphs.
The “Valuations” tab was designed to help you know what your company is worth now, and what it might be worth in the future given different scenarios. Global CFO uses the EBIDTA multiple method, the book value multiple method, and the discounted cash flow method to triangulate an approximate valuation of your company. This feature teaches you how you can increase your company’s worth by finding ways to improve its financials and certain key ratios.
PLEASE NOTE: The “Valuations” tab is highly useful, but is intended only as a comparison tool. When proper inputs and multipliers are used, this feature can be used to monitor progress in a company’s value. However, you should consult a professional if you need to value your company for a sale, merger, financing, or any other purpose for which an accurate value must be established.