Flow scenarios
Four ways to put an assumption to a company's own reported year on Flow's Scenarios tab.
Formula
Input price: Δcost = cost of revenue × your share × your change Revenue after = revenue + Δcost × pass-through Gross profit after = revenue after − (cost of revenue + Δcost) Operating income after = operating income + Δcost × pass-through − Δcost
Inputs
- Remove counterparties. Take customers, markets or suppliers out: see Supply-chain stress test.
- Supplier outage. One supplier stops. The identified network below it is walked a tier at a time, and the products the company's links with it carry are listed.
- Region disruption. Supply from one country stops. The walk, the company's own sites there, the products its links from there carry, and the share of revenue its report tags to the country.
- Input price. An input changes in price. Cost of revenue × your share of it × your change gives the change in cost; your pass-through (0% by default) moves revenue by that part of it.
How to read it
Every figure after a change is Estimated, with its arithmetic beside it. Without the inputs a scenario needs, it lists what is affected and gives no figure; the input price needs your share, because no document states what part of cost one input is.
Limitations
Not a forecast: the arithmetic of the report's own year under the stated assumptions. No share price and no profit outlook.
Also called: scenarios, supplier outage, region disruption, input price, pass-through, cost scenario.