Financial Inputs: ROI Parameters

Financial Inputs: ROI Parameters

Overview

This section provides instructions for setting and applying ROI parameters, which are crucial for enhancing the accuracy of financial models and reports.

Accessing ROI Parameters

Click "Next" to proceed to the ROI parameters section.

Defining the Dependent Variable

Respond to the question regarding the dependent variable:

  • Yes: Select if revenue is the dependent variable (indicating a revenue multiplier of 1).
  • No: Select if revenue is not the dependent variable and provide the relevant revenue multiplier based on the product's price.

Entering ROI Parameters

  • Granularity Selection: Choose the appropriate periodicity for price changes. If changes are infrequent, select yearly.

  • Required Fields:

    • Coverage Factor: Enter the percentage of total sales data covered.
    • Gross Margin: Enter the margin from total revenue.
    • Revenue Multiplier: Enter the price of the product.

Applying ROI Parameters

  • Enter values for each year. To apply the same values across all periods and dimensions, check the "All" box.

  • Utilize the "Export" and "Import" features for bulk data entry via Excel.

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