Difference between revisions of "Sales, Inventory, Profitability Analysis"
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| − | This screen allows you to run a profitability report for a product by analyzing the gross profits from sales, the volume of sales, and the average value of your inventory | + | This screen allows you to run a '''profitability report for a product''' or a set of products by analyzing the gross profits from sales, the volume of sales, and the average value of your inventory. |
To access this report generation screen, navigate as follows: | To access this report generation screen, navigate as follows: | ||
| Line 9: | Line 9: | ||
Then, fill in the form: | Then, fill in the form: | ||
| − | * Enter the Product ID to be analyzed. | + | * Enter the Product ID, or the first part of the ID for a set of products, to be analyzed. If you |
| + | leave this blank the analysis is performed for all products that were sold in the period. | ||
* Enter a specified date range or a pre-configured fiscal time period. You may | * Enter a specified date range or a pre-configured fiscal time period. You may | ||
manually enter the "From" and "Thru" dates or search for the dates using the | manually enter the "From" and "Thru" dates or search for the dates using the | ||
| Line 17: | Line 18: | ||
menu, to run the profitability analysis for actual results or for the budgets and | menu, to run the profitability analysis for actual results or for the budgets and | ||
forecasts. | forecasts. | ||
| − | * Click: [Run] button -- to run the profitability analysis | + | * Click: [Run] button -- to run the profitability analysis for return on equity (ROE) |
Clicking the [Return to Reports] button will take you back to the [[Reports Main Screen]]. | Clicking the [Return to Reports] button will take you back to the [[Reports Main Screen]]. | ||
| − | This report is based on [http://en.wikipedia.org/wiki/DuPont_analysis | + | The report table that is produced includes these data items for each product in the report: |
| + | |||
| + | * Product ID | ||
| + | * Sales Volume -- the revenue from sales | ||
| + | * COGS -- cost of goods sold | ||
| + | * Gross Profit -- revenue minus COGS | ||
| + | * Beginning Inventory | ||
| + | * Ending Inventory | ||
| + | * Average Inventory -- part of the assets | ||
| + | * Turnover -- Sales divided by Assets | ||
| + | * Annualized Turnover | ||
| + | * Profitability Ratio -- profit margin divided by equity | ||
| + | |||
| + | This report is based on a metric similar to [http://en.wikipedia.org/wiki/DuPont_analysis The Du Pont formula] of profitability analysis, but in this case the report uses gross profit margin for a particular set of products, and turns for that product inventory. Thus, the report is for incremental gross return on inventory assets, a measure of relative product performance. | ||
Latest revision as of 14:42, 19 November 2009
This screen allows you to run a profitability report for a product or a set of products by analyzing the gross profits from sales, the volume of sales, and the average value of your inventory.
To access this report generation screen, navigate as follows:
* From the Main Navigation screen, * Click: Financials Icon > Reports Tab * In the Inventory section, * Click: Sales, Inventory Profitability Analysis -- link to report page.
Then, fill in the form:
* Enter the Product ID, or the first part of the ID for a set of products, to be analyzed. If you
leave this blank the analysis is performed for all products that were sold in the period.
* Enter a specified date range or a pre-configured fiscal time period. You may
manually enter the "From" and "Thru" dates or search for the dates using the
calendar widget, or you may also use a fiscal time period by selecting it from
the drop down menu.
* Select the Fiscal Type (for example, "Actual" or "Budgeted") from the drop down
menu, to run the profitability analysis for actual results or for the budgets and
forecasts.
* Click: [Run] button -- to run the profitability analysis for return on equity (ROE)
Clicking the [Return to Reports] button will take you back to the Reports Main Screen.
The report table that is produced includes these data items for each product in the report:
- Product ID
- Sales Volume -- the revenue from sales
- COGS -- cost of goods sold
- Gross Profit -- revenue minus COGS
- Beginning Inventory
- Ending Inventory
- Average Inventory -- part of the assets
- Turnover -- Sales divided by Assets
- Annualized Turnover
- Profitability Ratio -- profit margin divided by equity
This report is based on a metric similar to The Du Pont formula of profitability analysis, but in this case the report uses gross profit margin for a particular set of products, and turns for that product inventory. Thus, the report is for incremental gross return on inventory assets, a measure of relative product performance.
