No good waiting until the quarter is gone. I use weekly reporting and monthly a management accounts to track performance vs plan inside the quarter.
If something comes off, I’m onto my Business Unit CFO to ensure there’s a recovery plan.
How does a CFO prep for an earnings call?
Short answer … it’s a shit ton of work.
Here’s what I do 👇🏼
No good waiting until the quarter is gone. I use weekly reporting and monthly a management accounts to track performance vs plan inside the quarter.
If something comes off, I’m onto my Business Unit CFO to ensure there’s a recovery plan.
If something falters I’ll keep digging (through monthly management reviews) to ensure we understand the root issue and got the right plan.
Ensure accountability is in right place, and monitor relentlessly
And accordingly fix the root problem…
AND even more importantly, to already be doing it by the time the call comes round.
Every CFOs worst nightmare. Going back to the market and telling them you got the numbers wrong.
I’ve had literal nightmares about this 😂😎
It’s never happened to me (touch wood). So going above and beyond to make sure the quarter is clean is a must.
I’ll review with all of my BU CFOs.
I’ll use my internal audit function if Im ever worried about integrity (can be an issue early in a new CFO role).
Reporting integrity cannot be compromised.
Now the books are clean and closed we now finalise the key reporting KPIs
- LFL Revenue growth (volume, mix, price split)
- EBITDA and EBIT margins
- Working cap
- Free cash Flow 😍
- Net Debt and Leverage
- Any relevant ops KPIs
This helps with immersion in how the release will be received
From there myself, CEO and IRD spend a couple of hours together to work out what the narrative is for the quarter.
What do we want to say? Are we able to say it? How do we bring it together in a way that is lucid, and consistent.
We need to make sure that the narrative flows from one episode to the next.
It can take unexpected twists and turns, that’s normal, but it needs explaining very clearly.
Lots of finetuning to get it right.
Making sure that the narrative is consistent with the published strategy (or well explained if not) is also important.
Once the published material is locked down (normally 7 days before call), I get into deep prep.
Prepping the script, prepping the faq, evaluating every angle of challenge. I’ll spend 2-3 solid days doing this in the week before a call.
The releases go out to the market first thing. And the analyst call is normally later that day.
My IRD will be working overtime to gauge market reaction and question themes.
A good IRD will know the questions that are coming before they are asked
This is followed with a few of the team firing some questions at the CEO and myself. This helps gets us on our toes
It’s just a case of executing against the prep.
Making sure you don’t give any rooms for bears to push a thesis after the call is important.
So tying up loose ends from the Q&A is important
This is really important.
What commitments have we made to our investors?
How do we take this back to the organisation to make sure our management teams feel the same accountability for delivery we do.
Then we are back to step 1!
CFO Earnings Call Prep:
1. Drive Performance
2. Clean Close
3. Establish Facts
4. Build the story
5. Prep hard
6. Deliver call
7. Debrief
Rinse and repeat.
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🌿𝑻𝒉𝒆 𝒔𝒕𝒐𝒓𝒚 𝒐𝒇 𝒂 𝑺𝒕𝒂𝒓 : 𝑫𝒉𝒓𝒖𝒗𝒂 & 𝑽𝒊𝒔𝒉𝒏𝒖
Once upon a time there was a Raja named Uttānapāda born of Svayambhuva Manu,1st man on earth.He had 2 beautiful wives - Suniti & Suruchi & two sons were born of them Dhruva & Uttama respectively.
#talesofkrishna https://t.co/E85MTPkF9W
Now Suniti was the daughter of a tribal chief while Suruchi was the daughter of a rich king. Hence Suruchi was always favored the most by Raja while Suniti was ignored. But while Suniti was gentle & kind hearted by nature Suruchi was venomous inside.
#KrishnaLeela
The story is of a time when ideally the eldest son of the king becomes the heir to the throne. Hence the sinhasan of the Raja belonged to Dhruva.This is why Suruchi who was the 2nd wife nourished poison in her heart for Dhruva as she knew her son will never get the throne.
One day when Dhruva was just 5 years old he went on to sit on his father's lap. Suruchi, the jealous queen, got enraged and shoved him away from Raja as she never wanted Raja to shower Dhruva with his fatherly affection.
Dhruva protested questioning his step mother "why can't i sit on my own father's lap?" A furious Suruchi berated him saying "only God can allow him that privilege. Go ask him"
Once upon a time there was a Raja named Uttānapāda born of Svayambhuva Manu,1st man on earth.He had 2 beautiful wives - Suniti & Suruchi & two sons were born of them Dhruva & Uttama respectively.
#talesofkrishna https://t.co/E85MTPkF9W
Prabhu says i reside in the heart of my bhakt.
— Right Singh (@rightwingchora) December 21, 2020
Guess the event. pic.twitter.com/yFUmbfe5KL
Now Suniti was the daughter of a tribal chief while Suruchi was the daughter of a rich king. Hence Suruchi was always favored the most by Raja while Suniti was ignored. But while Suniti was gentle & kind hearted by nature Suruchi was venomous inside.
#KrishnaLeela
The story is of a time when ideally the eldest son of the king becomes the heir to the throne. Hence the sinhasan of the Raja belonged to Dhruva.This is why Suruchi who was the 2nd wife nourished poison in her heart for Dhruva as she knew her son will never get the throne.
One day when Dhruva was just 5 years old he went on to sit on his father's lap. Suruchi, the jealous queen, got enraged and shoved him away from Raja as she never wanted Raja to shower Dhruva with his fatherly affection.
Dhruva protested questioning his step mother "why can't i sit on my own father's lap?" A furious Suruchi berated him saying "only God can allow him that privilege. Go ask him"
