1. User Story: As a financial analyst, I want to be able to calculate the current ratio to assess the liquidity of a company, so that I can determine its ability to meet short-term obligations.
Precondition: The financial statements of the company are available.
Post condition: The current ratio is calculated and displayed.
Potential business benefit: Improved understanding of the company’s liquidity position.
Processes impacted: Financial analysis and decision-making.
User Story description: The current ratio is a key liquidity ratio that measures a company’s ability to pay its short-term liabilities with its short-term assets. It is calculated by dividing current assets by current liabilities. This user story involves developing a tool or software that can automatically calculate the current ratio based on the financial statements provided. The tool should be user-friendly and provide clear results. The financial analyst will input the relevant financial data, and the tool will generate the current ratio, allowing the analyst to make informed decisions about the company’s liquidity position.
Key Roles Involved: Financial analyst, software developer.
Data Objects description: Financial statements, current assets, current liabilities.
Key metrics involved: Current ratio.
2. User Story: As a bank loan officer, I want to be able to analyze the quick ratio of a company to assess its liquidity, so that I can evaluate its ability to repay loans quickly.
Precondition: The financial statements of the company are available.
Post condition: The quick ratio is calculated and displayed.
Potential business benefit: Enhanced loan evaluation process.
Processes impacted: Loan approval and risk assessment.
User Story description: The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a company’s ability to pay its short-term liabilities without relying on inventory. It is calculated by subtracting inventory from current assets and dividing the result by current liabilities. This user story involves developing a tool or software that can automatically calculate the quick ratio based on the financial statements provided. The loan officer will input the relevant financial data, and the tool will generate the quick ratio, aiding in the loan evaluation process.
Key Roles Involved: Bank loan officer, software developer.
Data Objects description: Financial statements, current assets, current liabilities, inventory.
Key metrics involved: Quick ratio.
3. User Story: As a financial manager, I want to be able to assess the cash ratio of a company, so that I can evaluate its ability to meet short-term obligations with cash on hand.
Precondition: The financial statements of the company are available.
Post condition: The cash ratio is calculated and displayed.
Potential business benefit: Improved cash management and liquidity assessment.
Processes impacted: Cash flow management and financial planning.
User Story description: The cash ratio is a liquidity ratio that measures a company’s ability to pay its short-term liabilities with cash and cash equivalents. It is calculated by dividing cash and cash equivalents by current liabilities. This user story involves developing a tool or software that can automatically calculate the cash ratio based on the financial statements provided. The financial manager will input the relevant financial data, and the tool will generate the cash ratio, aiding in cash management and liquidity assessment.
Key Roles Involved: Financial manager, software developer.
Data Objects description: Financial statements, cash and cash equivalents, current liabilities.
Key metrics involved: Cash ratio.
4. User Story: As a business owner, I want to be able to analyze the working capital ratio of my company, so that I can assess its ability to cover short-term obligations.
Precondition: The financial statements of the company are available.
Post condition: The working capital ratio is calculated and displayed.
Potential business benefit: Improved financial decision-making and cash flow management.
Processes impacted: Financial planning and budgeting.
User Story description: The working capital ratio is a liquidity ratio that measures a company’s ability to cover its short-term liabilities with its current assets. It is calculated by dividing current assets by current liabilities. This user story involves developing a tool or software that can automatically calculate the working capital ratio based on the financial statements provided. The business owner will input the relevant financial data, and the tool will generate the working capital ratio, aiding in financial decision-making and cash flow management.
Key Roles Involved: Business owner, software developer.
Data Objects description: Financial statements, current assets, current liabilities.
Key metrics involved: Working capital ratio.
5. User Story: As a financial analyst, I want to be able to assess the operating cash flow ratio of a company, so that I can evaluate its ability to generate cash from its core operations.
Precondition: The financial statements of the company are available.
Post condition: The operating cash flow ratio is calculated and displayed.
Potential business benefit: Improved understanding of cash flow generation.
Processes impacted: Financial analysis and investment decision-making.
User Story description: The operating cash flow ratio is a liquidity ratio that measures a company’s ability to generate cash from its core operations. It is calculated by dividing operating cash flow by current liabilities. This user story involves developing a tool or software that can automatically calculate the operating cash flow ratio based on the financial statements provided. The financial analyst will input the relevant financial data, and the tool will generate the operating cash flow ratio, aiding in financial analysis and investment decision-making.
Key Roles Involved: Financial analyst, software developer.
Data Objects description: Financial statements, operating cash flow, current liabilities.
Key metrics involved: Operating cash flow ratio.
6. User Story: As a credit analyst, I want to be able to assess the debt-to-equity ratio of a company, so that I can evaluate its financial leverage and risk profile.
Precondition: The financial statements of the company are available.
Post condition: The debt-to-equity ratio is calculated and displayed.
Potential business benefit: Enhanced credit risk assessment.
Processes impacted: Credit approval and risk management.
User Story description: The debt-to-equity ratio is a financial ratio that measures a company’s financial leverage by comparing its total liabilities to its shareholders’ equity. It is calculated by dividing total liabilities by shareholders’ equity. This user story involves developing a tool or software that can automatically calculate the debt-to-equity ratio based on the financial statements provided. The credit analyst will input the relevant financial data, and the tool will generate the debt-to-equity ratio, aiding in credit risk assessment.
Key Roles Involved: Credit analyst, software developer.
Data Objects description: Financial statements, total liabilities, shareholders’ equity.
Key metrics involved: Debt-to-equity ratio.
7. User Story: As a financial planner, I want to be able to analyze the interest coverage ratio of a company, so that I can evaluate its ability to meet interest payments on its debt.
Precondition: The financial statements of the company are available.
Post condition: The interest coverage ratio is calculated and displayed.
Potential business benefit: Improved financial planning and debt management.
Processes impacted: Financial forecasting and risk management.
User Story description: The interest coverage ratio is a financial ratio that measures a company’s ability to pay interest expenses on its debt. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses. This user story involves developing a tool or software that can automatically calculate the interest coverage ratio based on the financial statements provided. The financial planner will input the relevant financial data, and the tool will generate the interest coverage ratio, aiding in financial planning and debt management.
Key Roles Involved: Financial planner, software developer.
Data Objects description: Financial statements, EBIT, interest expenses.
Key metrics involved: Interest coverage ratio.
8. User Story: As a risk manager, I want to be able to assess the cash conversion cycle of a company, so that I can evaluate its efficiency in managing its working capital.
Precondition: The financial statements of the company are available.
Post condition: The cash conversion cycle is calculated and displayed.
Potential business benefit: Improved working capital management.
Processes impacted: Inventory management and cash flow optimization.
User Story description: The cash conversion cycle is a financial ratio that measures the time it takes for a company to convert its investment in inventory into cash flow from sales. It is calculated by adding the average collection period, the average payment period, and the average inventory holding period. This user story involves developing a tool or software that can automatically calculate the cash conversion cycle based on the financial statements provided. The risk manager will input the relevant financial data, and the tool will generate the cash conversion cycle, aiding in working capital management.
Key Roles Involved: Risk manager, software developer.
Data Objects description: Financial statements, average collection period, average payment period, average inventory holding period.
Key metrics involved: Cash conversion cycle.
9. User Story: As a financial analyst, I want to be able to assess the inventory turnover ratio of a company, so that I can evaluate its efficiency in managing its inventory.
Precondition: The financial statements of the company are available.
Post condition: The inventory turnover ratio is calculated and displayed.
Potential business benefit: Improved inventory management and cost control.
Processes impacted: Supply chain management and financial analysis.
User Story description: The inventory turnover ratio is a financial ratio that measures how quickly a company sells its inventory. It is calculated by dividing the cost of goods sold by the average inventory. This user story involves developing a tool or software that can automatically calculate the inventory turnover ratio based on the financial statements provided. The financial analyst will input the relevant financial data, and the tool will generate the inventory turnover ratio, aiding in inventory management and cost control.
Key Roles Involved: Financial analyst, software developer.
Data Objects description: Financial statements, cost of goods sold, average inventory.
Key metrics involved: Inventory turnover ratio.
10. User Story: As a financial controller, I want to be able to analyze the accounts receivable turnover ratio of a company, so that I can evaluate its effectiveness in collecting outstanding customer payments.
Precondition: The financial statements of the company are available.
Post condition: The accounts receivable turnover ratio is calculated and displayed.
Potential business benefit: Improved cash flow and credit management.
Processes impacted: Accounts receivable management and financial reporting.
User Story description: The accounts receivable turnover ratio is a financial ratio that measures how quickly a company collects its outstanding customer payments. It is calculated by dividing net credit sales by the average accounts receivable. This user story involves developing a tool or software that can automatically calculate the accounts receivable turnover ratio based on the financial statements provided. The financial controller will input the relevant financial data, and the tool will generate the accounts receivable turnover ratio, aiding in cash flow and credit management.
Key Roles Involved: Financial controller, software developer.
Data Objects description: Financial statements, net credit sales, average accounts receivable.
Key metrics involved: Accounts receivable turnover ratio.