This project involves analyzing the financial performance of a sporting goods manufacturer across three business lines: Sports Equipment, Sportswear, and Nutrition & Food Supplements. The analysis will focus on key financial metrics, including the income statement, profit margins, EBIT margin, and OPEX ratio, evaluated through monthly KPIs. Additionally, this project will incorporate targets for expenses and revenue to provide deeper insights.
The dataset includes revenue and expense data, split by month and business line.
⭐ Interactive report link: https://lnkd.in/gzWgGd2Z
This project provides a comprehensive financial analysis of a sporting goods manufacturer across three business lines: Sports Equipment, Sportswear, and Nutrition & Food Supplements. The analysis highlights key revenue and expense metrics, offering insights into profitability and operational efficiency.
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Revenue: Sports Equipment leads with $8.9M in revenue, followed by Sportswear at $6.8M and Nutrition & Food Supplements at $1.8M. Sports Equipment also has the highest Cost of Goods Sold (COGS) at $3.7M, while Sportswear boasts the highest gross profit margin of 70.3%, compared to 58.76% for Sports Equipment and 44.82% for Nutrition & Food Supplements.
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Expenses: Operating expenses are highest for Sports Equipment at $2.5M, with Sportswear at $1.7M and Nutrition & Food Supplements at $1.4M. Despite these costs, Sportswear achieves the highest EBIT of $3.1M and an EBIT margin of 45.7%, while Sports Equipment has an EBIT of $2.7M and a 30.3% margin. Nutrition & Food Supplements faces significant financial challenges, with a negative EBIT and net profit margin.
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Profitability: Sportswear stands out with the highest net profit of $2.7M and a net profit margin of 40.2%. In contrast, Nutrition & Food Supplements shows a net loss of $712.9K and a negative net profit margin of -38.67%. Interest and tax expenses are highest for Sports Equipment at $410.5K, while Sportswear's profitability and efficiency highlight its strong performance.
Overall, the analysis underscores Sportswear's superior profitability and operational efficiency compared to the other business lines, while Nutrition & Food Supplements faces considerable financial challenges.
🔴 High Operating Expenses: Significant costs in Sports Equipment and Nutrition & Food Supplements, impacting overall profitability
🔴 Negative Net Profit Margin for Nutrition & Food Supplements: Indicates severe profitability issues and financial strain.
🔴 Low Gross Profit Margin for Nutrition & Food Supplements: At 44.82%, highlighting inefficiencies in generating profit from sales.
🔴 High Cost of Goods Sold (COGS) for Sports Equipment: At $3.7M, it significantly impacts the gross profit margin, highlighting issues with cost management in this business line.
🟢 Optimize Operating Expenses: Implement cost-control measures and efficiency improvements to reduce operating expenses
🟢 Improve Profitability: Focus on cost reduction, operational improvements, and exploring new revenue streams to address negative PM
🟢 Enhance GPM: Explore ways to increase sales prices, reduce production costs, or improve product mix to boost profitability.
🟢 Optimize COGS: Implement strategies to reduce COGS for Sports Equipment, such as negotiating better terms with suppliers, improving production efficiency, and reducing waste. This can help improve the gross profit margin and overall profitability