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Qlikview for Finance
Qlikview for Finance

Qlikview for Finance: Concoct dynamic business intelligence dashboards for financial analysis with QlikView

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Qlikview for Finance

Chapter 2. QlikView Dashboard Financial KPIs

There are literally thousands of key performance indicators on http://www.kpilibrary.com. Many are the same, or very similar, formulas with different names, and every business concern's CEO and CFO have their own measure that helps them measure business performance in a way that is meaningful to them.

In this chapter, you will learn about the following concepts:

  • What are key performance indicators (KPIs)?
    • Display sales as a KPI
    • Our first thermometer-type gauge
  • What are the three most common financial KPIs?
    • How to create and display the KPIs: Return on Investment (ROI), Return on Assets (ROA) and Return on Expenses (ROE) in a QlikView dashboard
    • Set expressions
    • Gauge displays
  • How to use QlikView to extend your revenue ratio reporting
    • List Box sheet objects vs charts
  • Common size income statement

What are key performance indicators?

Key performance indicators, also known as KPIs, are measurements used to judge how well your business is doing. They lend themselves well to use in visual displays, such as graphs, thermometers, charts, and gauges used in dashboards. A visual of a KPI in a dashboard should not be complicated, should not require elaborate explanation, nor should it be redundant to the actual numeric information.

Dashboards should display key information in a quick-to-digest format. Often, gauges, dials, and thermometers are used incorrectly, causing confusion rather than clarification. If you want to know more than the recommendations in the dashboard analyses in this book, suggested reading about good dashboard design is Stephen Few's Information Dashboard Design.

If we display the current sales in the current month, we hope that it will show a rising number daily. But just a number by itself might be meaningless to most of us. Are sales going up at a faster rate...

Display sales as a KPI

In our previously loaded sample data from Chapter 1, Getting That Financial Data into QlikView, sales is a grouping in the AcctGroup column and is a credit. It comes directly from the source system as a negative so that, when everything is summed up, we get a trial balance. That is why we could see the out of balances in our first tab. Sales will have to be multiplied by minus one (-1) in order for it to appear as a positive number. Also, we would like to have a target number to compare with Sales.

Note

There are two additional sample data Excel spreadsheets available for download from your account at http://www.PacktPub.com that are used in this chapter. One is named Target.xls and the other is named IS3yr.xls.

Our target is another Excel workbook named Target.xls that is available for download, or you can create your own workbook to load. The one available for download has this data:

Company

Target

Cheyenne Manufacturing

140000000

American Distribution

0

Cheyenne...

Common size income statement

My favorite KPI to implement in a dashboard is an extension of the Return on Sales ratio. This KPI or set of ratios is formally called Common size income statement but is often seen in an income statement as a percentage of Sales. I first came across this in an international business class on evaluating company profitability through financial statement analysis.

Note

There is an additional sample data Excel spreadsheet available for download from your account at http://www.PacktPub.com that is used in this chapter. Its name is IS3yr.xls.

Common size income statement lends itself particularly well to dashboards presented as a period-over-period line graph that allows you to see the shape and trend of the data, rather than just the numbers.

To create a common size income statement, start with the key subtotals of a standard income statement divided by total revenue. Here is an example of XYZ Company from an income statement template with a percentage of Sales column...

Summary

In this chapter, you learned about key performance indicators and several different ways of creating visual displays of them in QlikView. We began creating set expressions and used expression shortcuts. We created three KPI gauges for Return on Investment, Return on Assets, and Return on Expenses. We created a common size income statement chart and did some analysis of that chart to see how visualization can be useful in data comparison.

In the next chapter, we will begin examining a QlikView example dashboard for a chief financial officer, where we will examine more KPIs and more QlikView objects to see how they are used in this dashboard.

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Key benefits

  • Get accustomed to QlikView features for effective data analysis and visualization in Finance
  • Employ the Memory data store, which refreshes data in real time, providing a faster response to business financial information
  • A step-by step guide to using Qlikview features such as key performance indicators, interactive charts, and tables for financial analysis

Description

This book is an effective step-by-step tutoring guide for financial analysis using Qlikview. It begins by teaching you the crucial concepts of Qlikview Finance to help you develop an effective understanding of financial data analysis and finance. The book then goes on to cover real-world, practical examples on the use of Qlikview for financial planning and analysis, expense management, risk management, and more. Moving on, topics such as Asset Management QlikView Dashboard and Retail Sales Analysis are covered in a strategic way. We then shift the focus to deal with the concepts of Inventory, Supply Chain, and Plant Coverage Dashboards. The book then reaches its conclusion by dealing with ways to share your QlikView insights. By the end of this book, you will have a good understanding of how to use Qlikview for numerous applications in finance.

Who is this book for?

If you are a finance professional with basic knowledge of QlikView functions and wish to increase your knowledge of QlikView to apply it in the field of finance, then this book is for you. A good knowledge of financial aspects is an must-have.

What you will learn

  • Design Key Performance Indicators and extend your revenue ratio reporting
  • Set up actions within a Text Object and create variables to make a chart toggle between visible and not visible
  • Merge data from multiple sources to get more asset management options
  • Examine good and bad practices in dashboard design and create a Group button to make more data available in less space
  • Analyse the sales dashboard by adding tending lines and forecasting
  • Create input boxes and use the input in formulas to perform “What If” analysis
  • Examine the Key Performance Indicator (KPI) and Inventory Turnover, and investigate the usefulness of Pivot
  • Create a QlikView analysis document and add data to it to gain deep insights

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Publication date : Sep 29, 2015
Length: 174 pages
Edition : 1st
Language : English
ISBN-13 : 9781784395742
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Product Details

Publication date : Sep 29, 2015
Length: 174 pages
Edition : 1st
Language : English
ISBN-13 : 9781784395742
Category :
Tools :

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Table of Contents

11 Chapters
1. Getting That Financial Data into QlikView Chevron down icon Chevron up icon
2. QlikView Dashboard Financial KPIs Chevron down icon Chevron up icon
3. KPIs in the Financial Officer QlikView Dashboard Chevron down icon Chevron up icon
4. QlikView Asset Management with Multiple Data Sources Chevron down icon Chevron up icon
5. QlikView Sales Analysis Chevron down icon Chevron up icon
6. QlikView Forecasting and Trends Chevron down icon Chevron up icon
7. QlikView Inventory Analysis Chevron down icon Chevron up icon
8. QlikView Order Details Dashboard Chevron down icon Chevron up icon
9. QlikView Expenses Dashboard Chevron down icon Chevron up icon
10. Sharing Your QlikView Insights Chevron down icon Chevron up icon
Index Chevron down icon Chevron up icon

Customer reviews

Rating distribution
Full star icon Full star icon Full star icon Empty star icon Empty star icon 3
(2 Ratings)
5 star 0%
4 star 50%
3 star 0%
2 star 50%
1 star 0%
Rab Narayan Mohapatra Nov 06, 2015
Full star icon Full star icon Full star icon Full star icon Empty star icon 4
The contents are very good and nicely represented, specifically the dashboards which are covered in this book. This is really helped me a lot to know Dashboards for a Finance application.
Amazon Verified review Amazon
Dimitri Shvorob Oct 16, 2015
Full star icon Full star icon Empty star icon Empty star icon Empty star icon 2
My first encounter with the author's oeuvre was "QlikView 11 Application Development" - boasting a total of 60 pages. I dismissed the book sight unseen, pointing potential readers to two superior, varied choices: the thin, popular book by Pover, and the heavy de-facto-QlikView-bible by Garcia and Harmsen. Reviewers who did give it a chance were not impressed, complaining about missing files and confusing directions.I suspect that "QlikView for Finance" will be getting more of the same: I am looking at page 5, and already (in the last line) the author is asking the reader to build a QlikView table - but is not telling how! Running through vignettes should be easy on an author: Blackwood is not doing that to a high standard, and does not aspire for anything higher-value-added. (An attempt to introduce set analysis, on pages 24-28, fails). There are not nearly enough screenshots - will a QlikView newbie get through, or get stuck?I am not going to dismiss "QlikView for Finance": let a thousand flowers bloom, the book may find a grateful reader. That said, Pover's still looks like a better deal to me - and now there is another appealing alternative, "QlikView Your Business" by Troyansky et al. Do not be swayed by the title's reference to finance - that's a marketing gimmick and a non-factor.PS. Revisited Qlik Sense recently and ... lost an hour's work due to "Failed to get app because there is no app loaded" error - meaning a permanently corrupted Qlik Sense file. Google the error message and see the "happened to me too!" sobs of other developers, and silence from Qlik Sense staff. Tableau all the way!PPS. Oops, well, maybe not all the way after all. I had a brush with Tableau certification recently - a person, not an exam - and that was just awful, an unpleasant mix of incompetence and wrong attitude. I have had a chance to observe how Qlik's customer service dealt with a similar situation, and they scored head and shoulders above their competition. It's not all about the product.
Amazon Verified review Amazon
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