Net Income Forecasting, Delivering Value at Scale With Gen AI & Financial Analytics
Closer Consulting
A Data Science company specialized in Business Intelligence, Data Engineering and Artificial Intelligence.
Net Income Forecasting
?? Accurate net income forecasts are vital for businesses and investors, providing key insights into a company’s future profitability. Traditionally, analysts have used methods like Earnings Per Share (EPS) estimates to predict net income. However, machine learning is emerging as a powerful alternative, offering data-driven predictions that can enhance accuracy.
?? Machine learning models excel at analyzing large, complex datasets. These models can use not just financial statements but also economic indicators, market trends and commodity prices to forecast net income. By identifying patterns in this data, machine learning provides more comprehensive insights than traditional methods.
?? Data quality is essential for machine learning-based forecasting. Datasets often vary in time intervals, such as monthly or quarterly reports, and must be aggregated consistently. Additionally, outliers in financial data can distort predictions, so methods like clipping extreme values or predicting percentage changes are used to handle them effectively.
?? To assess accuracy, machine learning predictions are compared with analysts' EPS estimates, as both metrics are closely related. While machine learning models show promise, there is room for improvement. Expanding datasets and refining feature selection could improve their accuracy, making machine learning a valuable tool for more precise net income forecasting across sectors.
Delivering Value at Scale With Gen AI
?? Last INSIGHTS 2024 promoted by DSPA - Data Science Portuguese Association, we shared our experience in the talk "Delivering Value at Scale with Generative AI."
??? Presented by our colleague Joao Jarego, our talk explored how GenAI is transforming industries, helping businesses innovate and scale by unlocking new efficiencies, highlighting the real-world potential of this cutting-edge technology.
Watch the full presentation here.
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Optimizing Financial Analytics
?? Closer's PowerBI Squad undertook a project to enhance data analytics capabilities for a financial institution. The team aimed to improve the performance and flexibility of existing dashboards by applying best practices in both PowerBI programming and data warehouse modeling. By focusing on these areas, the project sought to streamline the extraction of valuable insights from the institution's data.
?? Key outcomes of the project included faster dashboard response times, increased flexibility for incorporating new measures and analytics, scalability to accommodate a growing number of users and quicker loading of data to PowerBI Online.
?? These improvements were achieved through the effective use of Oracle and PowerBI technologies, demonstrating the value of a well-structured data warehouse and powerful BI tools.
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