Using Tableau for Financial Data Analysis

Challenges in Digital World for CFOs: Chief financial officer Job in an organisation is always a critically important one,
the CFO role has evolved as “strategy thinker”. In order to take critical financial decision, CFO needs one uniform view of
enterprise data. A CFO must act as a strategic enabler to the business. CFO adheres to find all possible opportunities in
order to add values to the customers. All financial decisions are fact based utilizing financial KPIs. HFS Research reveals
with 160 F&A service buyer, 84% percent of respondents agree that enterprises that embrace digital transformation
across business units will outperform their competitors within two years.

Tableau Role in Financial Analysis: Tableau empowers CFO and financial decision makers in order to gain deep insights
of financial data; which in turn help them in improving service experience, open door for new opportunities, and
provide an added edge to competitors. Data visualization over heterogeneous sources along with live streaming data
adds unprecedentedly advantages to CFO’s decision making capabilities. Data from ERP applications cumulatively with
social networking help CFO in identifying trends and anomalies. CFO can estimate company-wide risks and uncover
relationships inside your business, so you can react faster and reap the rewards. Top 5 KPIs in financial analysis.

1. Current Ratio

2. Working Capital

3. Current Accounts Receivable and Average Debtor Days

4. Current Accounts Payable and Average Creditor Days

5. Total Cost of the Finance Function as a Percent of Revenue.

Holistic view of financial data which includes Balance Sheet Metrics, Key Financial Measures, Budget vs Sales, Month
Over Month view for Top Customers using Tableau, Revenue and Earnings Before Interest By Division.

Working capital: One of the critical pieces of

information CFOs need is working capital metrics:
Cash and cash equivalents are part of the current
assets section of the balance sheet and contribute
to a company’s net working capital. Net working
capital is equal to current assets, less current
liabilities.

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 Standard aging reports built on top of enterprise data doesn't cater current CFO needs, CFOs still lack the visibility they
need to make proactive decisions. Critical financial decision requires drill down reports to identify root causes and
bottlenecks. Tableau enables users to see summary and detailed data with multiple dimensional view using single
mouse click.

Adding variance analysis (Budget vs Sales) data that owners and managers need to do that critical variance analysis.
CFO and financial team planning improve by looking variance data pattern from over the period. Excel is widely used
tool among financial user community and large portion of the reports are developed in Excel. On the other hand
Tableau empowers of self service report to finance and operation teams. Nevertheless to say that also saves time for
those using reports as we co-build and collaborate on them to increase interaction and understanding. Live data
connection and ease of use are two major merits Tableau has and it wins over Excel. Along with sourcing data from
distributed file system adds another unmatched feature other data visualization tool can offer. User community
support saves your research time you may needed while you stuck up in some issue and need quick support.

Case Study#1 Income Statement Analytics:-
URL : https://youtu.be/zI-IWXkZLIk
Income statement analysis is a qualitative and
quantitative financial data in order drive some important
financial decisions. The analysis of the income statement
involves comparing the different line items within a
statement, as well as following trend lines of individual
line items over multiple periods. The break even
calculation is all fixed costs divided by the contribution
margin.

Operating margin: This is the profit earned after all

operating expenses have been subtracted from the gross
margin, divided by revenues. It reveals the amount that
a business has earned before financing and other costs
are considered.

Net profit margin: This is the profit earned after all

operating and non-operating costs have been subtracted
from the gross margin, divided by revenues. This is the
ultimate analysis item - can a business earn a profit
when all deductions are considered?

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 Case Study 2 focuses on Net Profit Growth:
Case Study#2: Month over Month Net Profit Growth.
Understanding how fast a company is growing is a critical URL: https://youtu.be/0PEjfn_cd8U
component of any investor and CFO. Selling a product or
service is the most fundamental factor in the success of
any business, and revenue growth rates are a direct way
to assess how successfully a company is doing exactly
that. To calculate total revenue growth, subtract the
most current period's revenue by the revenue number
from the same period in the prior year. This could be the
current year's annual revenue and last year's annual
revenue, this quarter and the prior quarter, or this
quarter and the previous year's comparable quarter.

Case Study#3: Monthly Performance Report.

URL: https://youtu.be/oq-3jcIZ9wM

Case Study 3 focuses on Monthly Performance Report. This

case study consists of monthly expense and revenue trends.
This critical piece of information account team needs in
order analysis organization performance with respect of
financial figures. A summary view of expenses and revenues
can quickly drive values from transactional account system
which other be difficult to draw.

Case Study 4 CFOs agree on one common fact that

creating a cash flow statement is a great first step, Case Study#4: Cash Flow Analytics
but if you don’t know how to read or analyse it, it’s URL: https://youtu.be/rUt_0jPezyM

not incredibly useful. The given case study focuses

on analysing cash flow elements using Tableau. A
cash flow analysis gives you a well-rounded picture
of your business’s financial health. Just as keeping an
eye on your personal checkbook balance tells you
whether you can afford certain personal expenses,
regularly analyzing your business cash flow will tell
you whether you’ll be able to make payroll, pay your
suppliers, buy the materials to fulfill orders, or carry
out expansion plans.

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