What is the operational analysis?

The operational analysis shows a company's revenues, costs, and expenses over a specific period, typically a quarter or year. It provides information on a company’s ability to generate revenues, manage costs, and make profits.

The following categories are available in the statement:

1. Net revenue: Total sum of all revenues including value added taxes. Revenue refunds get deducted from the sum.
2. Total costs: Total costs for all operational activities with optional breakdown into more granular cost categories such as personnel, marketing, IT or travel costs.
3. Operating profit: Total profit/loss resulting from deducting the total costs from the gross revenue. Optional breakdown to show the operating profit margin.
4. Taxes: Total sum of all corporate taxes like e.g. corporate income tax, trade tax or value-added tax.
5. Net profit/loss: Total profit/loss resulting from deducting the taxes from the operating profit. Optional breakdown to show the net profit margin.

What does it tell me about my company?

The operational analysis tells you several things about your company’s financial health:

1. Profitability: it shows whether your company is making a profit or incurring a loss. The net profit (or loss) at the bottom of the statement gives a picture of your overall financial performance.
2. Revenue trends: by comparing revenues across periods, you can assess whether your revenue is growing, stable, or declining.
3. Cost efficiency: it highlights your direct costs (COGS) and operating expenses. By looking at these, you can identify areas where your company is overspending and where cost-cutting might be needed.
4. Margins: gross profit and operating profit margins tell you how efficiently your company is converting revenue into profit at different stages, like after production costs (gross margin) and after operating expenses (operating margin).
5. Financial management: it helps assess how well you're managing your expenses relative to your revenues, showing whether your business is sustainable and how well it can scale.
6. Tax and interest Impact: by factoring in interest and tax expenses, it shows how much profit is left after financial obligations, which is important for long-term planning.

What are the underlying data sources?

The operational analysis is based on cash transactions. It will not necessarily be identical to the accounting statements which have to follow local accounting standards.