Human Capital Management

Financial Analysis And Return Targeting

The governance of financial resources:

  • The funding of variable pay and share-based incentives
  • The financial implications of alternative share-based incentive schemes
  • The valuation of non-traded investments
  • Other financial modelling solutions and special financial modelling projects

Good strategic planning is key

We have a corporate performance statistical database comprising all JSE- listed companies giving trend analysis in relation to EIGHT key performance ratios by sector for a six-year historic period that can be used for comparator analytical purposes. Your financial performance can be compared against this database over that period for the purposes of a new listing or a special report to shareholders.

 

We are able to recommend target rates of return on equity or on average weighted cost of capital for any business based on financial and/or sectoral risk assumptions. The rate of growth expected by shareholders can be computed from share price and dividend trends.

 

We are able to compile and generate ten-year financial feasibility studies using our template financial models, which are structured using the so-called DuPont approach. We can assist users to compile a report motivating their financial projections for financing and investment proposals.

We have a suite of three financial models that can be used to determine the annual profit-sharing pool and the profit-sharing ratios between the different natural groupings of employees and shareholders; also, where share participation schemes are in place what the scale of the awards should be annually. These models use pie-theory to justify the scale of variable pay in all forms across an organization, generating reports that can be submitted to a remuneration committee.

 

Our analytical models include a valuation of non-traded investments model that can be used to annually value subsidiary companies within a group. A ten-page report is customized for each, assisting your Finance Department to present recommendations to top management at annual intervals. 

 

We are able to assist clients to develop corporate and individual performance evaluation scorecards for the determination of bonuses, using sound corporate financial targets within the framework of the so-called ‘balanced scorecard’ approach.

 

A fee is quoted based on actual requirements.