Sensitivity Analysis in Finance | Calculating Break-Even Point

[@gregorycohen5221]

Insanely helpful!! Who needs business school when you have Eric’s videos??

[@eric_andrews]

That's my goal! Thanks greg!!

[@duncanmahood2878]

Excel's sensitivity analysis tool is literally a crystal ball 🔮🧙‍♂️

[@eric_andrews]

That's exactly right Duncan!!

[@tentimetex]

Great video Eric, thank you! i like the fact that you do real case studies and apply all of this to real situations, (like your case study about launching a subscription for example), it distinguishes you from other channels which just basically teach the theory only.

[@eric_andrews]

Really appreciate the feedback and I will try to continue building content around basically the things I work on in my real life. Also thanks for letting me know about the subscription box livestream, that's helpful for me to know. Cheers

[@Akinlabi68]

Great Job, Eric! Watching this video actually provided answers to the questions agitating my mind on scenario and sensitivity analysis of my organization's budget. I'd love to see your videos on project investment appraisals as well.

[@vishalsurana9503]

Really so much helpful. Thanks for teaching it in just few minutes with examples. Thank you!

[@eric_andrews]

You are very welcome!

[@keyspanmusic]

Another heater from E Money! Super helpful, thanks for keeping us learning!!

[@eric_andrews]

Thanks keyspan my pleasure!!

[@mostlikely...]

Wonderful teacher, will sign up to your courses

[@eric_andrews]

Appreciate that! Thanks for the comment and the support 🙏

[@catalyst_cadatalyst6369]

Thanks for making this video!

[@eric_andrews]

Glad it was helpful 👍

[@davidmartha1454]

Hey man! just discovered your channel. Great videos, suscribed!

[@eric_andrews]

Hey David - welcome! Really appreciate you letting me know, hope you learn a lot and feel free to ask questions in the comments and I'll try to respond. Cheers

[@xiecatherine2677]

Super helpful

[@nargeshaghparast8148]

Hi thanks for your learning, I have a problem with data tables can you resolve it?

[@tarakouattara6290]

I used to spend my week-end watching your videos.. Great job Eric. Do you have a video on project investment appraisal

[@eric_andrews]

Hi Tarak - makes me so happy to hear that!! I think my video on discounted cash flow analysis might help, it depends on what type of investment you're looking at but it helps you to put a valuation on an opportunity => kzbin.info/www/bejne/fZ6TiaGVgs6XkJo Let me know if that helps, if not I can give you some ideas here in the comments if you give me a few more details

[@yesiunderstand6044]

For us the sensitivity analysis use the production of units of kv electricity, tonnes of waste throughput, etc

[@eric_andrews]

That's really interesting, appreciate you sharing that. It's a good example of showing that sensitivity analysis can be used to model lots of different situations. What metric specifically are you analyzing? Electricity production?

[@yesiunderstand6044]

@@eric_andrews electricity production from municipal solid waste

[@eric_andrews]

That's awesome. Such important work. Thank you

[@shawnward3494]

Do you have a video walking through forecasting income statement, cash flow, then balancing the balance sheet

[@eric_andrews]

Hey Shawn - yes I do, it's one of my most popular videos, you can find it here: kzbin.info/www/bejne/rp27dY2vj56UsM0

[@shawnward3494]

@@eric_andrews thanks as I am working on for class and will have one for a final project with our group. I will watch and see the key components to make the balance sheet - balance

[@eric_andrews]

@@shawnward3494 great to hear shawn! That video will show you how to balance a balance sheet! Cheers

[@tingfuj3158]

Service company R&D expense , installation fee and assets purchase. Above item need to count into break even revenue?

[@eric_andrews]

Hi Tingfu - you can use sensitivity analysis to analyze any financial model, you just need to set everything up first. Definitely R&D expense or any other expenses would be on the income statement, so that would factor into your breakeven. Asset purchases would be on the balance sheet and then the depreciation would flow through the income statement. Does that make sense? Cheers

[@eric_andrews]

Questions? Let me know in the comments happy to discuss. 🚀 Also, if you want to learn how to systematically scale your startup without ending up as one of the 90% of startups that fail, have a look at this ⇒ www.ericandrewsstartups.com/financeforstartups

[@potent4808]

Hi Eric. Where is the Free excel file of this video?

[@heenagupta7090]

How to link so as to get the results

[@eric_andrews]

Right there in the description you can download the file for free

[@makannointernationalusa2389]

Why operating profit is negative . Is it loss for the company ?

[@eric_andrews]

Yes, that is a loss