Forecasting Tools and Forecasting Financial Statements (Herramientas de Proyecciones y Proyecciones de los Estados Financieros) (Spanish)

72 Pages Posted: 16 Feb 2011

See all articles by Ignacio Velez-Pareja

Ignacio Velez-Pareja

Grupo Consultor CAV Capital Advisory & Valuation

Miguel Ricardo Davila

Pontifical University Javeriana Cali

Date Written: February 15, 2011

Abstract

This is a teaching material for a module of Financial analysis at Universidad Tecnológica de Bolivar. The educational material was developed with Professor Ricardo Davila from Universidad Javeriana, Bogota, Colombia. The written material has been modified several times using the feedback from students and other users. This material is an unpublished one.

This chapter presents some forecasting tools and a step by step procedure to forecast financial statements without plugs and without circularity. We include the effect of price demand elasticity and the effect of accounts receivables policy on growth. The basic idea is to perform a financial management procedure for increasing value and making forward looking financial management and analysis. We propose a break-even point analysis in a dynamical fashion. When making forecasted financial statements the break-even analysis from one year is not totally independent from the previous break-even point. We find large differences between this and the traditional approach. We give detailed examples for each case.

Note: Downloadable document is in Spanish.

Keywords: Forecasting, Forecasting Financial Statements, Financial Management, Break-Even Point Analysis, Forecasted Financial Ratio Analysis

JEL Classification: M41

Suggested Citation

Velez-Pareja, Ignacio and Davila, Miguel Ricardo, Forecasting Tools and Forecasting Financial Statements (Herramientas de Proyecciones y Proyecciones de los Estados Financieros) (Spanish) (February 15, 2011). Available at SSRN: https://ssrn.com/abstract=1762114 or http://dx.doi.org/10.2139/ssrn.1762114

Ignacio Velez-Pareja (Contact Author)

Grupo Consultor CAV Capital Advisory & Valuation ( email )

Ave Miramar # 18-93 Apt 6A
Cartagena
Colombia
+573112333074 (Phone)

HOME PAGE: http://cashflow88.com/decisiones/decisiones.html

Miguel Ricardo Davila

Pontifical University Javeriana Cali ( email )

Cl 40 6-23
Bogota, CO Valle del Cauca 11001
Colombia

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