Dynamic Financial Planning for Real Events, Not the Calendar

Many companies stumble in their financial planning. As just one example, consider how Peloton, the exercise equipment and training company, made highly optimistic consumer demand forecasts, assuming that the surge of demand during the COVID-19 pandemic would last. The problem was compounded by a gummed-up supply chain that deterred potential new customers.

Peloton’s planning wasn’t flexible enough to adjust quickly to changes in demand and supply. The result: a large new factory it will never use and has to sell, and a drop in market capitalization from nearly $50 billion in January 2021 to $3.3 billion in June 2022.

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