Problem-Solving Resource Center

Financial Analysis

What It Is Used For

  • To determine whether the savings of a solution implementation justify the costs for it.

When to Use It

  • When required by your organization.
  • When analyzing solutions or other changes to a process or product to determine if it would be fiscally responsible to make the investment.

Important Notes

  • Simple calculations can give a team a sense of whether the savings justifies the cost.
  • Remember that Financial Analysis really doesn’t look at intangible savings.

Financial Analysis