Fast-Track Finance Insights: Igniting Company Performance
Finance
The main purpose of this analysis is to monitor all the relevant financial KPIs of a company in order to perform effective financial management. In this sense, the dashboard allows tracking costs, sales and profits in detail in the different locations of the company as well as studying how its financial performance varies throughout the year and week, but also how it varies according to different factors such as sales segment and discount band.
The dashboard, which is realized iteratively, allows the evaluation of the company's financial performance in a way that the sales and marketing departments can take the necessary actions to achieve and overcome the established financial goals of the company.
GOAL
This analysis aims to provide quick information on tracking costs, sales, profits and relevant financial KPIs to increase the company's performance.
-
What is the total profit?
-
What is the profit distribution over the year? What are the months when the company is unable to make profit?
-
Is there a profit trend during the week?
-
What is the discount situation that detracts from the company's profit?
-
How do the segments impact the profit?
RESULT
Taking into account the results of the analysis, some ideas can help put into perspective what the company's actions should be to modify the situations that do not allow the company to earn profit. Firstly, it is necessary to understand why the Midmarket and Channel Partners segments in none of the locations allow profit. Secondly, special attention should be paid to Sunday to also comprehend the reason for the negative profit.
Once the necessary actions to counteract this trend have been taken, a new analysis of profit throughout the year and week should be carried out in order to determine if the right measures were taken.
INSIGHTS
The North American locations of the company (Canada, USA and Mexico) generated a total profit of $7M, with only negative performance in June, August and October. Tuesday is the day of the week with the highest profit ($2.7M) and Sunday is the only day of the week with negative profit.
The European locations of the company (Germany and France) delivered a total profit of $5M, with only negative performance in January, June and July. Sunday is the only day of the week with a negative profit.
There are similarities in the two continents' locations: the segments that yield the highest revenue are Small Business, Government and Enterprise, while Midmarket and Channel Partners do not generate any positive profit. Moreover, when the discount is too high, the company reports a negative loss.
In this sense, June is the month with the highest loss (-$1M), and Sunday is the weekday in which no profit is made; Midmarket and Channel Partners are the most prejudicial segments and high discounts strongly detract from the company's bottom line.
