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)

Suggested data model for profit margin analysis

Implementation
Kit

The following resources will enable you to design your dashboard and data model with sample data and then apply it to your own data. Note that you will need to have a previously installed version of Sisense (you can use the free trial version if you’re not a customer).

Sample data and dashboard examples (direct download)

Documentation