Financial Tutorial – Trending Year To Date

The easiest way to get a good feel for how your business is trending is by reviewing the portfolio of 22 Financial Trend charts.

FinancialIntro_TrendingCharts

Watch our video that walks through each of the charts.

Financial Summary

At the top of the page, we present the year to date summaries for Revenue, Cost of goods sold, Gross margin, Operating expenses and EBITDA.

Revenue Trends

The revenue trends include:

  • Revenue vs Plan : Here you see the posted revenue for each posted month versus than plan targets.
  • Cumulative Revenue vs Plan : Some months will have revenue perform very well against plan while other months might far short. What is often most important is how well you are performance cumulatively year to date.
  • YTD Revenue By Contract Type : All revenue is not created equal. The revenue by contract type tells you what types of contracts are generating the most revenue.
  • Revenue By Contract Type : How has the revenue from each contract type trending over the months?
  • Average Revenue Per Client : A good indication of whether you are bringing on larger clients is the average revenue per client.
  • Recurring Revenue % of Total : Recurring revenue represents an ongoing, reliable source of revenue. This chart shows that trend of recurring revenue as a total of all year.
  • Revenue Distribution (# of clients) : It’s useful to understand the number of clients who are generating revenue in specific ranges. Do most of your client base provide revenue in the lowest range? (And you can change these ranges)
  • Client Revenue Distribution : It’s more important to understand the amount of revenue that your large clients are generating. Often – there might not be as many – but they will represent a significant portion of revenue.
  • YTD Top Accounts By Revenue : Which of your clients have generated the most revenue in the current calendar year. (Note: Although you can set the fiscal month, this chart will always use Jan-Dec data).

Cost of Goods Trends

The Cost of Goods trends include:

  • Cost of Goods Sold vs Plan : How much is it costing you to provide the services that you are billing for? Here you see the cost of goods sold versus your plan targets. Is your cost of goods sold trending up or down?
  • Cumulative Cost of Goods Sold vs Plan : How well is your cost of goods performing cumulatively year to date.
  • YTD Cost of Goods By Contract Type : You much is it costing you to provide the services associated with each contract type.
  • Cost of Goods By Contract Type : How has the cost of goods from each contract type trending over the months?

Gross Margin Trends

The Gross Margin trends include:

  • Gross Margin vs Plan : How much gross margin (revenue minus cost of goods sold) is being generated? How are
  • Cumulative Gross Margin vs Plan : How well is your gross margin performing cumulatively
  • YTD Gross Margin By Contract Type : You much money are you keeping after your costs of good for the services associated with each contract type?
  • Gross Margin By Contract Type : How is your margin from each contract type trending over the months?
  • Average Gross Margin Per Client : How has the average gross margin per client been trending over the month?
  • Gross Margin Distribution (# of clients) : It’s useful to understand the number of clients who are generating gross margin in specific ranges. How many clients are you losing money on?
  • YTD Top Accounts By Gross Margin : Which of your clients have generated the most margin in the current calendar year. (Note: Although you can set the fiscal month, this chart will always use Jan-Dec data).
  • YTD Bottom Accounts By Gross Margin : Which of your clients have generated the least margin in the current calendar year. Have you lost money on any client? (Note: Although you can set the fiscal month, this chart will always use Jan-Dec data).
  • YTD Bottom Accounts By % Gross Margin : Which of your clients has the lowest percent of gross margin in relation to revenue generated? (Note: Although you can set the fiscal month, this chart will always use Jan-Dec data).

What is your favorite Financial Trend?

I would love to hear from you.

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One thought on “Financial Tutorial – Trending Year To Date

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