Data areas
Whatever data you have, we draw out the answer to a management question
Your data does not need to be complete or tidy. Most companies already have enough data to answer their most important questions; it is just scattered.
// Analysis areas
What we analyse
From financial statements to the production line; each area with its own management questions and metrics.
Finance & accounting
Financial statements, ledgers and accounting entries.
What data you give us
- Balance sheet and income statement
- General and subsidiary ledgers
- Cost centres
Questions it answers
- Why did operating profit fall?
- Which costs are growing faster than sales?
- How risky is the capital structure?
Sample metrics
- Gross profit margin
- Operating profit margin
- EBITDA
- Current ratio
-- Gross margin
gross_margin = (revenue - cogs) / revenue
-- Operating profit
operating_profit = gross_profit - opex
-- EBITDA
ebitda = operating_profit + depreciation
-- Net profit
net_profit = operating_profit - interest - tax - otherFormulas from the platform metric catalogue
Sales
Invoices, returns, discounts and prices.
What data you give us
- Sales invoices and returns
- Price lists and discounts
- Sales targets
Questions it answers
- Did sales grow through price or volume?
- Which regions and products are lagging?
- How much margin do discounts take away?
Sample metrics
- Sales growth
- Average order value
- Target attainment
- Discount share of sales
-- Top-5 customer concentration
customer_concentration = SUM(TOP(5, customer_revenue)) / revenue
-- Customer retention
customer_retention = COUNT(active_prev AND active_now) / COUNT(active_prev)Formulas from the platform metric catalogue
Production
Production reports, downtime and waste.
What data you give us
- Daily output per line
- Downtime log and its causes
- Material usage and waste
Questions it answers
- Why is actual output below capacity?
- What does each hour of downtime cost?
- At which stage does waste occur?
Sample metrics
- Production efficiency
- Downtime hours
- Waste rate
- Output per labour hour
-- Production efficiency
production_efficiency = produced / planned
-- Yield rate
yield_rate = good / produced
-- Waste rate
waste_rate = waste / producedFormulas from the platform metric catalogue
Inventory & warehouse
Stock movements, stock cards and inventory value.
What data you give us
- Item stock cards
- Warehouse receipts and issues
- Inventory value by item
Questions it answers
- How much capital is tied up in dead stock?
- Which items run short repeatedly?
- What is the right reorder point?
Sample metrics
- Inventory turnover
- Days inventory outstanding (DIO)
- Dead stock value
- Stock-out rate
-- Inventory turnover
inventory_turnover = cogs / AVG(inventory_value)
-- Days inventory outstanding (DIO)
dio = AVG(inventory) / cogs * days
-- Dead stock value
dead_stock_value = SUM(inventory_value WHERE days_without_movement >= 180)Formulas from the platform metric catalogue
Purchasing & supply
Purchase orders, prices and delivery times.
What data you give us
- Purchase orders and invoices
- Purchase prices over time
- Supplier delivery times
Questions it answers
- How have prices of key materials changed?
- How much extra do urgent purchases cost?
- How concentrated is buying on a few suppliers?
Sample metrics
- Purchase price index
- Share of urgent purchases
- Delivery lead time
- Days payable outstanding (DPO)
-- Days payables outstanding (DPO)
dpo = AVG(payables) / cogs * daysFormulas from the platform metric catalogue
Human resources
Payroll, overtime and workforce mix.
What data you give us
- Payroll and benefits list
- Overtime and absence
- Headcount by department
Questions it answers
- How has staff cost changed relative to sales?
- In which departments has overtime become structural?
- How much does productivity differ between departments?
Sample metrics
- Staff cost to sales
- Sales per employee
- Overtime ratio
- Staff turnover rate
Customers
Purchase history, account balances and payment behaviour.
What data you give us
- Purchase history per customer
- Account balances and due dates
- Credit terms
Questions it answers
- Which customers are the most profitable?
- Where is the collection risk?
- Which customers are buying less?
Sample metrics
- Sales concentration in top 5 customers
- Days sales outstanding (DSO)
- Customer retention rate
- Overdue receivables
-- Days sales outstanding (DSO)
dso = AVG(receivables) / revenue * days
-- Top-5 customer concentration
customer_concentration = SUM(TOP(5, customer_revenue)) / revenue
-- Customer retention
customer_retention = COUNT(active_prev AND active_now) / COUNT(active_prev)Formulas from the platform metric catalogue
Suppliers
Delivery performance, quality and payment terms.
What data you give us
- Delivery and return records
- Payment terms
- Quoted prices
Questions it answers
- Which supplier is late most often?
- Which payment terms are negotiable?
- How dependent are we on a single supplier?
Sample metrics
- On-time delivery
- Return rate
- Average payment period
- Share of largest supplier
-- Days payables outstanding (DPO)
dpo = AVG(payables) / cogs * daysFormulas from the platform metric catalogue
Receipts & payments
Bank account movements, cheques and commitments.
What data you give us
- Bank account statements
- Cheques receivable and payable
- Instalments and commitments
Questions it answers
- Will we be short of cash in the coming weeks?
- Where is operating cash being used?
- Which payments can be rescheduled?
Sample metrics
- Operating cash flow
- Cash conversion cycle
- Cash coverage of commitments
- Cash forecast variance
-- Cash conversion cycle
ccc = dso + dio - dpo
-- Days sales outstanding (DSO)
dso = AVG(receivables) / revenue * days
-- Days inventory outstanding (DIO)
dio = AVG(inventory) / cogs * days
-- Days payables outstanding (DPO)
dpo = AVG(payables) / cogs * daysFormulas from the platform metric catalogue
Do you have a management question your data should answer?
Fill in the analysis request form; we review your information before the first meeting so the conversation is precise from the start.