Now, welcome to the end of the course.
Now, let me briefly recap what we saw today.
We did a brief recap of week three, which we were looking at NFO working capital,
diagnosis, and action plan.
Now, what did we do today?
Now, we first started with a sensitivity analysis, do you remember?
Which was, what happens in the financial statements if something goes wrong,
if the competition gets bigger and then push prices down.
If Mr. Lichtstein's wife gets sick and you have to get some dividends and
many other stuff, that have an effect in the balance sheet and in the P&L.
Now, we then moved into an example of the sustainable growth in which I gave you
an example of a company that keeps sales constant or growth in sales.
And then you saw in a very simple numerical example how the sustainable
growth formula actually works.
Then I explained to you a little bit that minimum cash for
operations and other spontaneous sources of funds actually go into the NFO
because they are short-term and they are free.
Then we talked briefly about seasonal companies, and
we said it very important when you face the analysis of a seasonal business.
First, that you look at two months in the balance sheet on the P&L, the best and
the worst.
So that you don't lose an idea of what's happening in the company,
because sales differ very much from one month to another.
And second thing, operational ratios have to be done manually
because the formula doesn't hold anymore.