Profitability Analysis Service
The bottom line of a company is the total of profits brought by individual departments, product groups, customers or employees. Any company can split the total results into at least one such dimension. Profitability analysis will allow you to:
- Determine the profitability of each department,
- Check if you’ve tied up too much capital in inventory,
- Assess cost levels across product groups or departments,
- Calculate and compare the profitability of your employees, clients and products.
As in any other model, we provide maximum convenience for users – the data will be automatically imported into the calculations from your ERP system.
Functionality
- Separation of revenue and direct costs by products or departments, by month, by product groups;
- Attribution of indirect costs by structural units, by month, in accordance with the principles defined by you, (e.g., applying the same cost margin);
- Calculation of each unit’s profit or loss for the month;
- Summary of each unit’s results for the year;
- Possibility to create product or employee ratings according to different parameters (sales, average discount, net profit, etc.);
- Calculation of break-even sales for each department or product, considering its cost structure;
- Calculation of KPIs (e.g. sales per m2, average inventory turnover, average profit per customer, etc.). KPI comparison across departments;
- Attribute of the so-called “economic” costs; for example, the alternative cost of money frozen in inventory or with debtors;
- Automatic data input – data for this service will be automatically imported into the model from your accounting system.
Prices
Development of a profitability model typically depends on the complexity. As a result our clients get a clear picture of how each part of their company performs and can quickly adjust the performance.
If you want to increase your profit through detailed analysis of your company’s individual components – e-mail us to andrew@agcapitalcfo.com to learn more and get a quote.
Demo
Here we reveal some of our files so that you are able to evaluate the appearance and functionality of our budgets. Download it below!
