3 minutes
Here’s a set of seven educational videos featuring simple, yet incredibly useful calculations that can be done quickly during conversations.
When brainstorming various ideas with your team, you really want to see the financial impact fast! We created our Napkin Math videos to help keep the conversation moving. The primary purpose of the videos is to show the simple math that people can literally do on a napkin to understand ballpark financial performance.
There are several short videos in this ongoing series. Visit our videos page to take a quick look and get the conversation moving!
Napkin Math: ROA, Asset Growth & Maintaining Net Worth (Part 1)
Demonstrates how to calculate the return on assets (ROA) required to achieve asset growth goals, while maintaining the current net worth ratio. This calculation can help show how ROA, asset growth, and net worth are all connected, including what their impact on each other is.
Napkin Math: ROA, Asset Growth & Increasing Net Worth (Part 2)
Quick math to show what your ROA needs to be to increase net worth and achieve asset growth goals, building on the Napkin Math we introduced in a previous video (Part 1, above) to calculate the ROA needed to maintain net worth.
Napkin Math: ROA, Asset Growth & Net Worth (Part 3)
Two additional considerations for ROA, asset growth, and net worth—the ability to calculate the ROA required to increase net worth over multiple years, and how the Napkin Math compares to the actual math. See how the calculations we’ve laid out can be easily adjusted—on the fly—to give you the answers you need to keep the conversation going.
Napkin Math: Change in Value for Treasurys or Other Bullet Investments (Part 4)
Need an easy way to approximate the change in the value of bullet investments? This video helps when reviewing the reasonableness of price changes in different rate environments, particularly when looking at net economic value results or considering purchases.
Napkin Math: Change in Value on Amortizing Products (Part 5)
Whether it’s loans or investments, Napkin Math can be used to quickly approximate the changing value of amortizing products based on their average life. The examples used can help when considering purchases or reviewing the reasonableness of NEV results.
Napkin Math: Quickly Calculate the Impact to ROA (Part 6)
Credit union leaders often need to consider the impact of shifting assets, increasing deposit rates, and changing-rate environments. This video shows how to quickly calculate the potential impact to earnings of decisions under consideration.
Napkin Math: Yield vs. Value Volatility (Part 7)
This quick calculation can help you evaluate the risk for return when making choices about how to lend or invest.
c. myers corporation has partnered with credit unions since 1991. The company’s philosophy is based on helping clients ask the right, and often tough, questions in order to create a solid foundation that links strategy and desired financial performance. c myers has the experience of working with over 550 credit unions, including 50 percent of those over $1 billion in assets and about 25 percent over $100 million. They help credit unions think to differentiate and drive better decisions through real-time ALM decision information, CECL consulting, financial forecasting and consulting, liquidity services, strategic planning, strategic leadership development, process improvement, and project management.
Apply It to your Boardroom
- What ratios does your board consider on a regular basis?
- How does your board stay compliant with NCUA’s rule 701.4, which requires financial literacy for directors?
- Which of these videos gives you an idea for further discussion at your next board meeting? What’s that idea?
