Real Estate Portfolio Management / Strategic Financial Analysis / Financial Analysis

Update Analysis Metrics

Before Running the Update Analysis Metric action

Create Background Data. All metrics assume that at a minimum you have created the basic inventory listing of buildings, properties, capital projects and capital equipment items that you want to analyze. You can do so using the Background Data views provided with the Strategic Financial Analysis application.
Run the Forecast Capital Costs action. For each asset you want to gauge capital expenditures on, run this action. For example, you must run this action on a capital project or a capital equipment item before it will appear in the analysis
Run the Forecast Income and Expenses action. For each building or property for which you want to estimate operating costs and income, run this action.

Project and equipment costs

ARCHIBUS doesn't assign costs directly to projects or equipment. For many metrics, the application assigns the project or equipment cost to the building or property, and sums the total project and equipment cost for that building or property. For this reason, if you are going to include capital project or capital equipment in the analysis, you will use the Forecast Capital Costs action. This would result in the project or equipment item having a finanal_params record. If the project or equipment item is in the analysis, ARCHIBUS includes all the metrics for that project or equipment item.

The metrics that apply to projects and equipment are these:

Book Value depends on finanal_params record.
FCI depends on activity_log items assigned to that project or equipment item.
Schedule Variance (%) comes from the metric trend values table. (projects only)
Budget Variance (%)comes from the metric trend values table. (projects only)

Even if the analyst does not include a project or equipment item in the analysis explicitly (by creating its own finanal_params record), any historic project costs are still rolled up with the building or property.

About the Update Analysis Metrics calculations

The Update Analysis Metrics action updates the values in the cost analysis, specifically the values in:

Financial Analysis Summary (finanal_sum)
Lifecycle Cost Analysis Summary (finanal_sum_life)
Capital and Expense Matrix (finanal_matrix)

The action does so by looking at the analysis metrics defined in the ARCHIBUS Metric Definitions (afm_metric_definitions) table. For each analysis metric that calculates a new value, this action update the values in finanal_sum and finanal_sum_life.

For a description of the base analysis metrics, see Base Analysis Metrics.

For analysis metrics that calculate ratios (for example, Cost per Gross Area), the action uses the Numerator and Denominator metrics referenced in the ARCHIBUS Metric Definitions table to calculate the value.

Once all values are in the finanal_sum and finanal_sum_life summary tables, then the action calls a separate method to update the Capital and Expense matrix.

Analysts invoke the Update Analysis Metrics action from the Aggregate and Forecast Costs task for either buildings, properties, projects, or equipment.

The analysis values are stored in the Financial Analysis Summary Values (finanal_sum) and the Lifecycle Analysis Summary Values (finanal_sum_life) tables. These tables hold the values for the analysis fields (that is, the summary values) that can be displayed in:

the Asset Scorecard panel
by default, in the Analysis Scorecard, Asset Map or Site Map, when the Financial Analysis Console displays a financial analysis.
one or more of the console's panels (Asset Scorecard, Analysis Scorecard, Asset Map, Site Map ) when you click on a Capital and Expense Matrix box.

Some analysis fields collect values by fiscal year, and others collect values for the entire financial lifecycle of the asset or project. Those analysis values collected by fiscal year are stored in the Financial Analysis Summary Table (finanal_sum), while those analysis values collected for the entire life-cycle are stored in the Life-cycle Financial Analysis Summary Table (finanal_sum_life).

Tips:
Planned Life required to calculate Annual Worth. If the planned_life does not exist for the building or property, the Annual Worth (fy) cannot be calculated, and the Update Analysis Metric action updates this metric with the value zero for that building or property and that Fiscal Year.
Book Value: If the asset's parameters for depreciation (ex. missing cost_purchase, planned_life, etc.) do not exist in finanal_params table, the depreciation and thus the metric cannot be calculated, and the Update Analysis Metric action updates this metric with the value zero for that asset and that Fiscal Year.
Close the progress bar manually. To close the progress bar, click Close after the action has completed. Otherwise, the progress bar doesn't close.