Future value drivers

Abstract

A computer-implemented method for analyzing corporate investments to measure the performance of a company is provided. The method may include: receiving financial data, the financial data including a plurality of operating investments of the company and a Future Value (FV) of the company; determining with a data processor a plurality of data points from the financial data, each of the plurality of data points indicative of a ratio between one of the plurality of operating investments and the Future Value (FV) of the company; determining a first benchmark and a second benchmark, the first benchmark indicative of a threshold ratio between the FV and the operating investment, the second benchmark indicative of a threshold operating investment; and displaying the data points, the first benchmark, and the second benchmark to advise a user of an effectiveness of the operating investments.

1 . A computer-implemented method for analyzing corporate investments to measure the performance of a company, the method comprising:
 receiving financial data, the financial data including an operating investment of the company and a Future Value (FV) of the company;   determining, with a data processor, an FV multiple indicative of a ratio between the operating investments and the FV;   determining an investment amount for the company indicative of company money available for investment;
 determining, with a data processor, a first value indicative of the value of the investment amount taken as profit; 
   determining, with a data processor and the FV multiple, a second value indicative of the value of the investment amount as reinvested into the company; and   displaying the first value and the second value to advise a user of an optimal investment strategy for the investment amount.   
     
     
         2 . The computer-implemented method of  claim 1 , wherein the first value comprises a net income of the investment amount. 
     
     
         3 . The computer-implemented method of  claim 1 , wherein the first value comprises a capitalized net income of the investment amount. 
     
     
         4 . The computer-implemented method of  claim 1 , wherein the second value includes a tax-credit component indicative of a tax savings associated with reinvestment of the investment amount. 
     
     
         5 . The computer-implemented method of  claim 1 , wherein the second value includes a multiples component equal to the investment amount multiplied by the FV multiple. 
     
     
         6 . The computer-implemented method of  claim 4 , wherein the second value includes a multiples component equal to the investment amount multiplied by the FV multiple. 
     
     
         7 . The computer-implemented method of  claim 1 , wherein FV=Market Value of Equity+Market Value of Debt−(NOPAT/WACC)−excess cash, and wherein excess cash represents the investment amount for the company indicative of company money available for investment. 
     
     
         8 . The computer-implemented method of  claim 1 , wherein at least one of the plurality of operating investments is indicative of a company asset that drives at least one of group consisting of volume, price, product mix, customer retention, brand equity and the breadth/depth of the company's product portfolio, advertising, training costs, management talent considerations, intellectual capital, technology investments, and capital flexibility. 
     
     
         9 . A computer-implemented method for conveying financial information to a user, the method comprising:
 generating a hierarchical representation of a Future Value (FV) of a company, the hierarchical representation including:
 a revenue component that defines an expected dollar amount of future sales, 
 a costs component that defines an expected dollar amount of future costs, 
 a capital component that defines an expected future capital structure of the company, and 
 an FV driver component indicative of a company asset that drives at least one of group consisting of the revenue component, the costs component, and the capital component, the FV driver component including an associated FV driver value; and 
   displaying the hierarchical representation to advise the user of possible management strategies to increase the FV.   
     
     
         10 . The computer-implemented method of  claim 9 , wherein the hierarchical representation comprises a dynamic model that automatically determines FV based in part on the FV driver value. 
     
     
         11 . The computer-implemented method of  claim 10  further comprising:
 providing a plurality of company assets; 
 receiving a selection input indicative of a selected asset of the plurality of company assets; and 
 receiving an association input indicative of an association between the selected asset and at least one of the revenue component, the costs component, and the capital component, 
 wherein the generating further includes generating the hierarchical model in accordance with the first input and the second input. 
 
     
     
         12 . The computer-implemented method of  claim 11  further comprising:
 receiving an FV driver input; 
 updating, in response to the receiving of the FV driver input, the FV driver value in accordance with the FV driver input; and 
 updating, in response to the updating of the FV driver value, the hierarchical representation.