In sales data analysis, it’s common to use Gross Profit Margin (GPM) to understand efficiency. Since the GPM basically represents the revenue generated from sales deducted by the costs of making said sales (cost of goods sold).
As a rule of thumb, a high GPM would indicate that our company/brands are likely to make a reasonable profit as long as we keep the remaining costs (Manufacturing overhead, operating expenses, etc.) under control. A low GPM would indicate that the production costs are too high and changes need to be make to production processes.
We’ll use this indicator to understand which of our brands is best utilized and study its behavior over time, compare our brands across different locations (countries) and more.
This will give us a good indication regarding which brand to allocate more resources and invest in.
Dashboard Example (sample data)
Click on the image to open and interact with the dashboard:
Increase our company’s profitability by 5% compared to last year by effectively utilizing our resources across the brands we produce.
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).