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A 'Goalseek' shows you the strategies likely to be needed to reach a
desired financial target or goal.
You could use a 'Goalseek' to:
- Perform sensitivity analysis. (Sensitivity analysis indicates which Business
Driver is most susceptible to changes in business conditions.)
- Identify the change(s) required in order to achieve a desired result.
- Perform single strategy objectives.
- Perform multiple strategy objectives.
This can be explained with a few examples:
Key in 0 in the EBITDA
result to identify the sensitivity towards achievement of Breakeven EBITDA.
Key in 0 in the Funding Sur(req) Result to identify the movement in order to achieve a breakeven funding position.
Key into the Funding Sur(req) the amount of debt they wish the entity to have.
The 'Goalseek' screen will provide the various options which can be pursued in order to achieve the objective.
Identify what actions are needed to achieve a required Interest Cover, by keying in the target covenant.
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