How does the Sensitivity analysis work?

The sensitivity table displays the impact of a 1% change (in isolation) to each of the following levers. The Levers are displayed in the order of most impact to least impact for your data:

• Price Value is the 12 months rolling Core Revenue.
• Direct Cost Value is the 12 months rolling Core Direct Costs including Depreciation.
• Volume Value is the 12 months rolling Core Revenue.
• Indirect Cost Value is the 12 months rolling Core Indirect Costs including Depreciation.
• Days Receivable Value is a system calculation based on a comparison of the AR balance in the Balance Sheet for the month and the Revenue balance in the Income Statement for the month.
• Days Payable Value is a system calculation based on a comparison of the AP balance in the Balance Sheet for the month and the Purchases in the Income Statement for the month. Purchases include all costs less Wages, Interest, Depreciation and Non-Operational (or Direct Cost Materials, Other Direct Costs, and Other Indirect Costs).
• Inventory Days Value is a system calculation based on a comparison of the Inventory balance in the Balance Sheet for the month and the Materials balance in the Income Statement for the month.
• Fixed Assets Value is the total Fixed Assets shown in the Balance Sheet.

It effectively shows which of these measures is the most “sensitive” by comparing the impact of the 1% change.

The sensitivity analysis can be viewed on Historical data (turn Show Forecast off) or Forecast data (turn Show Forecast on).

The Power of Price column shows how much more powerful price is than any other individual change.