👉 Transparency math is a method used in financial and economic analysis to clarify the relationship between different financial metrics by making their underlying assumptions and calculations explicit. It involves breaking down complex financial statements or models into simpler, more understandable components, often by isolating individual factors like revenue growth, profit margins, or cash flows. This approach helps stakeholders, such as investors or managers, to better understand the drivers behind financial performance and make more informed decisions by clearly seeing how each element contributes to or affects the overall picture. For instance, transparency math might involve showing how a change in one metric impacts another, or it could detail the assumptions behind a forecast model to provide a clearer picture of potential outcomes.
