Tool Intro: Our proprietary technical approach explained

Our approach on investment analysis is based on our work with Opexar®, our proprietary investment analysis tool. If you want to get an idea about how we set up an actual model in Opexar®, you might find it helpful to go through this intro.

Opexar® is a very powerful software application which can be used to model and analyse nearly all financial planing problems. Think of it as a financial CAD-System.

Just below we introduce you to our usage of Opexar® in the context of a balance sheet and profit- and loss-statement. The example is kept extremely simple in order to make the underlying principle more visible.

If you are interested in learning more about the differences between Static and Stochastic Financial statements please see the Static and Stochastic Financial Statement article before you go on and start with Step 0.

• First we start with a very simple financial statement- Step 0.
• Then we introduce an uncertain quantity of goods sold and show how it impacts the profit and loss-statement and the balance sheet. – Step 1. 
• In Step 2, we assume that the previously assumed fixed prices of goods sold now become uncertain. We also show how we let price and quantities statistically interact.
• In Step 3 we deepen the model further by deriving the quantities sold through a market model.
• Following that, we show the impact of an uncertain initial investment amount on the balance sheet and on the P&L –  Step 4.
• A final note concludes this intro.

If you are interested in the tool itself, feel free to contact us via the link provided: Advexo.