Profit Margin Analysis

High Level Design

Overview

The Net Profit Margin KPI measures how effective your business is at generating profit on each dollar of revenue you bring in. This financial KPI is a measure of the profitability of the business and is instrumental in making long- and short-term financial decisions.

Goals

 

• Allow the CFO of the company to compare the net profit margin over time and relative to other companies in the same sector.
• Allow investors to compare the net profit margin across industries to identify the most profitable and attractive sectors and companies to invest in

Objectives

Understand how much money a company makes for each dollar in sales

KPI Architecture

Objectives	KPIs	Measures	Data Source
Understand how much money a company makes for each dollar in sales	Net Profit Margin = (Net profit / Net Sales Revenue)*100	Net Profit	Income Statement / fact_Financial_Data
		Net Sales	Income Statement / fact_Financial_Data

Data Requirements

#	Source	Table Name	Table Details (Type, #Rows, Key field/s)
1	Accounting data (income statement)	fact_Financial_Data	Transaction Table
2	Accounting data (income statement)	fact_Targets	Transaction Table

Data Modeling (Elasticube Design)