Introduction to
Financial
Analytics
Presented By: Farheen Irfan
Week 1
Introduction to Financial Analytics and its role
in decision making
Farheen Irfan
Lecturer EMBA, KSBL and CGMA
Work Experience
Profile 2019 ~ Present: Head of Investments,
ACT Group
• Managing portfolio of high-net worth
individuals worth USD 100 million invested
Education in various energy projects both furnace oil
• BBA, Institute of Business and renewable based IPPs, artificial
Administration sweeteners, solar turnkey and PPAs,
FMCG, healthcare and alternate
Majors, Finance investments (blockchain based projects,
microfinance bank and couple of fintech
• EMBA, Karachi School of Business projects).
& Leadership
2022 ~ Present: Chief Operating Officer,
Majors, Fintech
ACT Engineering Services Pvt. Ltd.
• Responsible for an order intake of USD
• CGMA 60Mn+ from identified markets (Project
Size: 100MW).
Achievements/ Accomplishments 2018 ~ 2019: Associate, Investment
Banking, Elixir Securities Limited
• National CFA Research Challenge’16 winner Team IBA, Pakistan. • Preparation of Information Teaser, financial
model and Information Memorandum (IM)
• Awarded 100% Scholarship for undergrad studies from IBA. for potential public and private deals.
• Recognized as Best Intern of the Year at HBL in August 2015. 2016-2018: FMP Trainee, GE
• Analyzed components within Pakistan’s
• Represented Pakistan on Global Shell Live Wire Program about power tariff to understand its drivers and
applied the knowledge to create and revise
“Entrepreneurship in Pakistan”. financial models – replicated the same on
Iran’s power companies too.
Overview of Financial Analytics
70% of FP&A are more able to create robust insights if
they have predictive analytics. (Aberdeen)
By 2020, automation will replace 40% of transactional
accounting work. (Accenture)
57% of CFOs say delivery of data and advanced analytics
is a critical capability of tomorrows finance (EY)
Only 10% of executives feel teams have the skills to
support the arenization's digital ambitions (AICPA)
Need of Financial Analytics in Business
Financial Analytics
Helps a business to:
• Understand the performance of an organization.
• Measure and manage the value of tangible and intangible assets of an
organization.
• Manage the investments of the company.
• Forecast the variations in the market.
• Increase the functionalities of information systems.
• Improve the business processes and profits.
Asset Business
01 Performance 02 Valuation 03 Forecast 04 Processes
Financial analytics can help Financial Analytics can help you In-depth insights to improve Emergence of new business
shape up the business future focus on measuring and cashflow, profitability, and models need alignment with
goals. managing your business’s business value. technology paving way for
tangible assets such as cash and financial analytics.
equipment.
Importance and Applications in various
Modeling
Industries Simulation
Modeling helps To understand
in analyzing the impact of
historical data, various factors
understanding on financial
relationships performance and
between make informed
variables, and decisions based
making on the range of
predictions about possible
future financial outcomes.
performance.
Tools: Excel, Python, R, and specialized Applications of
Tools: Bar Charts, Heat Maps,
financial modeling software. Financial Dashboards.
Analytics
Forecasting Visualization
Revenue Financial
forecasting, visualization
expense involves
forecasting, cash representing
flow forecasting, financial data in
and overall graphical or
financial visual formats to
performance aid in
predictions. understanding,
analysis, and
decision-
making..
Role of Financial Analytics in Decision Making
Product Analytics Predictive Sales Analytics
It delves into product performance data It leverages data to anticipate future
to refine development and marketing sales trends and optimize strategies.
strategies
Cost Analytics Cashflow Analytics
It evaluates expenses across business It provides insights into financial liquidity
functions to identify cost-saving and helps manage cash resources
opportunities. effectively.
Logistics Analytics Product Profitability Analytics
Financial
It enhances transportation and Analytics It assesses the financial performance of
distribution processes for streamlined products to enhance profitability
operations.
Supply Chain Analytics Demographic Analytics
It optimizes the flow of goods from It utilizes demographic data to
production to delivery for efficiency. understand and target specific
consumer groups.
