For a moment, let’s leave aside the regulatory obligations, often experienced as “stomachache” by entrepreneurs and managers: what is the purpose of correlating cash flows to the service of financial debt? First of all, let’s clarify the acronym: Debt Service Coverage Ratio (DSCR) expresses the foreseen ability to repay financial debts, as the ratio between […]
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The forecasting of the balance sheet is one of the cornerstones of a complete business plan, mainly for two reasons: 1. it tells the reader how balanced the financial debt / equity ratio will be 2. it indicates in what proportion the available capital will be employed in tangible, intangible, working capital or other assets. […]
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No. Accurate economic forecasts require complex and versatile models, to incorporate changes in the scenario or simulate the impact of endogenous and exogenous variables on profitability. Leaving aside the classic “Trust me, it only takes two hours: don’t you have a template?”, I can assure you that the economic forecasts are a complex and time-expensive […]
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