Valuation
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Using ChatGPT for Data Cleaning
I’m always on the lookout for tools that can streamline financial analysis and provide valuable insights. One such tool that has caught my attention is ChatGPT’s data analysis features, which emphasize the importance of clean data for ensuring the accuracy and reliability of datasets. Data cleansing, especially when utilizing AI tools like ChatGPT, is crucial… Continue reading
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Revolutionizing Consumer Loan Financial Reporting and Analysis
This blog discusses in more detail revolutionizing consumer loan financial reporting and analysis with Vector ML Analytics. A few weeks ago, I posted about my successful collaboration with Vector ML Analytics to enhance the financial reporting systems I used in a consumer lending portfolio. This collaboration involved a comprehensive corporate financial analysis to evaluate the… Continue reading
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DeepSeek’s Just-in-Time LLM: Applying an Old Manufacturing Methodology to Create Cheap AI
Just-in-Time Manufacturing (JIT) revolutionized industrial production when Toyota pioneered it in the 1970s, though its roots can be traced back to the company’s experiments in the 1950s. The core principle was radical yet simple: produce only what is needed, when it is needed, and in the amount needed. This approach stood in stark contrast to… Continue reading
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LCV is for client unit economics, True Profitability is for product unit economics and another approach to drive value in your SaaS business.
Living in a SaaS world, we are often focused on LCV (Lifetime Customer Value) for a critical unit measurement of profitability. But, it’s also important to understand your product unit economics. True Profitability, a term and methodology developed by Pedro Ferro and described in his book by the same name, determines the specific unit economic… Continue reading
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Key considerations for SaaS (or any recurring revenue) financial models
Build your components so the are easily expandable in time and detail In SaaS, decoding revenue dynamics is pivotal for pushing the business forward. Let’s talk about the elements of financial modeling tailored for SaaS companies: 1. Revenue Insights: MRR (Monthly Recurring Revenue): This quantifies the predictable monthly revenue, offering immediate insights into short-term revenue… Continue reading
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Unlocking Value Creation: The Power of Lifetime Customer Value in Operational Execution
You might see it in various places as CLV (Customer Lifetime Value) or LTV (Lifetime Value). Lifetime Customer Value, or LCV, is what I call this metric. Fairly interchangeable in my experience, people who use these metrics regularly will know what you mean when you refer to any one of them. LCV’s compact measurement of… Continue reading