Profit and Loss Dashboard
Objective
A profit and loss statement (P&L), or income statement or statement of operations, is a financial report that provides a summary of a company’s revenues, expenses, and profits/losses over a given period of time. The P&L statement shows a company’s ability to generate sales, manage expenses, and create profits. It is prepared based on accounting principles that include revenue recognition, matching, and accruals, which makes it different from the cash flow statement.
Structure of the Profit and Loss Statement
A company’s statement of profit and loss is portrayed over a period of time, typically a month, quarter, or fiscal year.
The main categories that can be found on the P&L include:
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Revenue (or Sales)
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Cost of Goods Sold (or Cost of Sales)
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Selling, General & Administrative (SG&A) Expenses (Often clubbed under Operating Expenses)
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Marketing and Advertising (Often clubbed under Operating Expenses)
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Technology/Research & Development ((Often clubbed under Operating Expenses)
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Interest Expense
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Taxes
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Net Income
An Example of Walmart’s profit and loss statement can be found at
Analysing a Profit and Loss Statement
There are various ways one can analyse profit and loss statements, One ofcourse review each of the above category of accounts for increase or decrease viz-a-viz the previous comparable perioud (lets say quarter or year). As we all know, businesses want to maximize revenue/sales, reduce expenses to optimal levels and increase profits over time. A trend analysis of various income and expenses heads can help understand one’s performance over the time period.
Apart from the trend analysis, various Financial KPIs have emerged over years to make sense of the businesses income performance. Common popular KPIs include the following:
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Gross Profit Margin: What is the Left over revenue after deducting cost of revenue? Indicates % profitability after deducting cost of producing goods or service.
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Operating Profit Margin: What is the left over revenue after deducting sales and marketing and other operating expenses from gross profit. Indicates % profitability after deducting Operating Expenses as well.
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Operating Expense Ratio: What is the expense towards operations as a share of revenue?
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Net Income Margin: What is the final profit business generated after deducting all the expenses? Indicates % share of revenue that is accrued as profit at the end of the period.
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Berry’s Ratio: What % of Gross Profit is spent on Operations?
A Visual Dashboard can aptly enable finance managers and executives to stay on top of the above KPIs and trends all the time. An Example Dashboard built using Xceed Analytics is shown below:
About Xceed Analytics
Xceed analytics empowers enterprises to accelerates the data and analtyics adoption with one unified end-to-end data and analytics platform which enables no code/low-code data ingestion, data transformation and self-service bi for all your data use cases. For more details on Xceed Analytics, visit Data Catalog, Unified Data Platform, Data & AI Platform, Self Service BI | Cynepia
About Cynepia Technologies
At Cynepia, We enable enterprises address the complexity of the modern data stack by providing a Data First, Low Code/No Code AI Platform, which is governable, collaborative and frictionless. It brings the data producers and data consumers together in a seamless manner helping enterprises creating value from data seamlessly. Our approach with End to End Data First AI Platform helps enterprises turn data into value rapidly. Xceed Analytics translates our vision and imagination of what a Modern data stack needs to deliver. We own the user experience and bring the benefits of modern data stack to the larger enterprise market including MM and SME enterprises. Visit www.cynepia.com to know more about Cynepia Technologies.
