What If is a sensitivity analysis tool used to project possible outcomes of a livestock operation. By entering the parameters you can create a scenario based matrix of possible outcomes and targets. The What If analysis tool encompasses three key areas:
1.Buying Guide
2.Selling Guide
3.Return on Investment
Buying Guide
By entering the various known fields, you will create a matrix detailing what the return will be based on $/kg paid at given weights. This will give an instant guide providing you with the ability to make informed fundamental purchasing decisions on the fly.
Selling Guide
By entering the known information, you can arrive at a matrix of possible end results based on those assumptions. This will give you possible outcomes and the likelihood of achieving these results prior to commencing a feeding regime. These results can be based on either projected target weights or projected target days held.
Return on Investment
Return on Investment allows you to identify what return on investment can be achieved and the likelihood of achieving these results prior to committing to any livestock trading transactions. ROI can factor in any borrowing expenses to undertake this activity to give an accurate as possible forecast. Again this can be driven by projected target weights or projected target days held.
NB: All guides when created can be printed as an easy reference tool.
