How can Profitability Analysis Drive Faster and Better Decisions?

As CFOs increasingly become key advisors in the Monthly Reporting Process, they must rely on modern self-service corporate performance management (CPM) and business intelligence (BI) tools. Using interactive Profitability Analysis like the Gross Margin Trend Analysis Report template shown below enables them and users from the executive teams to experience near real time revenues, cost of sales, gross profit and gross margin insights that help drive faster and better decisions.

Who uses Gross Margin Trend Analysis Reports and What are Some Key Analytical Features?

In today’s fast-paced business environment, CFOs are under high pressure to supply end users like the management team and board members with timely and concise Profitability Analysis. Companies use key features like the ones below to support their users with effective analysis that helps drive better insights into trends that influence margins and profitability:

  • Summary view of the gross margin for executive and board level updates.
  • Graphical and reporting views of gross margin for the preceding 14 month periods.
  • Analysis of Current YTD Actual Revenue, Current YTD Actual COGS, Gross Profit, and Gross Margin

The Gross Margin Trend Analysis Report template can be used as a key element of the Monthly Reporting process:

Example of a Gross Margin Trend Analysis Report to Streamline the Monthly Reporting Process

Example of a Gross Margin Trend Analysis Report to Streamline the Monthly Reporting Process

The Gross Margin Trend Analysis Report is a ready-to-use Profitability Analysis template from the Solver Marketplace.

A Brief Description of the Gross Margin Trend Analysis Report

Profitability Analysis reports like the one seen in the image above are interactive and parameter driven and typically contain sections with charts and data . One of the important features that aid the user in the analysis process is the ability to easily see a graphical 14 month rolling view of gross margins. Gross Margin Trend Analysis Reports are often used in conjunction with rolling trended balance sheets and profit & loss reports, gross margin dashboards, cost and revenue analysis reports, sales reports, revenue and margin budget input forms.

Data Integration to Transaction Systems

Most organizations these days want automated and streamlined planning, reporting and analysis. However, many of the benefits described earlier rely on best of breed Corporate Performance Management (CPM) tools and/or Business Intelligence (BI) capabilities as well as data marts or data warehouses that use pre-built integrations to the organization’s ERP system. Oftentimes, they also need integrations to other key data sources like CRM, subscription systems, payroll tools, etc.

Modern, cloud-based ERPs like Microsoft Dynamics 365 Finance (D365 Finance), Microsoft Dynamics 365 Business Central (D365 BC), Sage Intacct, Acumatica, Netsuite and SAP have robust APIs which allow for dynamic integrations to CPM and BI tools that are fully automated and flexible to run on a schedule or on-demand.

Additional Resources to Aid with Research of Templates, CPM and BI Tools