How Satellite Data Can Approximate Income Statements Before Quarterly Reports
At LaGrand, we research on cutting-edge satellite data and advanced mapping techniques to provide groundbreaking insights into the steel industry. Unlike traditional approaches that rely on quarterly reports, our methodology focuses on approximating key income statement metrics—such as revenue, Cost of Goods Sold (COGS), EBITDA, and EBIT—based on the observed activities of production facilities. This approach doesn’t predict future prices or trends but instead delivers early insights into operational performance before official financial disclosures are made.
Approximating Metrics from Measured Activities
Using thermal satellite data, we continuously monitor the operational activities of steel production sites. Each facility in our database is enriched with metadata, including furnace type, efficiency, and material usage. By linking this data to observed production levels, we can calculate key inputs like required raw materials (e.g., coal, iron ore, and gas) and their associated costs. These results allow us to estimate critical metrics such as operational expenses.
Bridging the Gap Between Observation and Financial Data
The core advantage of our solution lies in its ability to fill the information gap between operational activities and financial disclosures. While quarterly reports provide a retrospective view of performance, our method delivers these insights as they happen. For example:
- Revenue Approximation: By analyzing steel production volumes and linking them to market prices, we estimate sales revenue for the reporting period.
- Cost Estimation: By calculating material usage and energy consumption, we approximate the expenses associated with production.
- Profitability Metrics: Combining revenue and cost data enables us to derive key profitability indicators such as EBITDA and EBIT.
This enables stakeholders to understand a company’s financial performance earlier, without relying on future projections or market assumptions.
No Forecasting, Just Early Insights
It’s important to clarify: our solution is not about forecasting. Instead, it’s about using real-time data to approximate financial metrics before quarterly reports are published. This unique approach empowers stakeholders with actionable insights that are rooted in ongoing operational activities, not speculative forecasts.
Why This Matters
- Earlier Decision-Making: Gain access to financial approximations months before official reports.
- Continuous Monitoring: Understand how production trends impact key financial metrics in real time.
- High Confidence: Base your analysis on observable, verifiable data from production facilities.
Transforming Observations Into Business Intelligence
By observing production sites through thermal satellite emissions and linking this data to market and facility-specific parameters, LaGrand transforms raw operational data into financial insights. Our solution provides unprecedented visibility into the steel industry, enabling businesses to better navigate a competitive and volatile market.