1. Analysis background introduction
With the increasingly fierce competition in
the retail industry, enterprises are facing multiple challenges such as
fluctuations in market demand, rising cost pressure and compression of profit
margin. How to achieve stable operation and sustainable profits in the fierce
market environment has become the core issue of the management of retail
enterprises. As an important management accounting tool, CVP analysis can help
enterprises gain an in-depth understanding of the relationship between cost,
sales and profit, scientifically assess operating risks, and optimize business
decision-making.Through the analysis of volume and profit, enterprises can
clarify the break-even point, reasonably formulate sales targets, optimize
product structure, and improve cost control ability, so as to enhance the
market competitiveness and risk resistance of enterprises.
2. Statement of key issues
Is the current capital protection point of
the enterprise reasonable? How big is the gap between the actual sales revenue
and the capital preservation point? Is the security margin of the enterprise
sufficient? These problems are directly related to the operating safety and
risk resistance of enterprises.
How to use the results of the profit
analysis to provide a scientific basis for enterprises to formulate sales
targets, cost control, price adjustment and other business decisions is an
important goal of this analysis.
3. Analyze the plan
3.1 Select key data indicators.
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Serial number
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Name of the indicator
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Paraphrase
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Analysis angle
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1
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Sales revenue
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The total income obtained by the
enterprise through the sale of goods or the provision of services within a
certain period of time.
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Reflecting the market sales ability and
business scale of the enterprise is the basis of profit analysis. By
analyzing the growth or decline of sales revenue, we can judge the changes in
market demand, marketing strategy and competitiveness.
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2
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Marginal contribution rate%
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Marginal contribution (sales revenue
minus variable cost) is the percentage of sales revenue.Marginal contribution
rate = (sales revenue - variable cost) / sales revenue × 100%
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Measure how much sales revenue each
additional yuan can bring to the enterprise to cover fixed costs and profits.
The higher the marginal contribution rate, the stronger the profitability of
the enterprise and the stronger the risk resistance to price and cost
changes.
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3
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Protect the capital point sales
collectionEnter
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The enterprise will make a profit within
a certain period of time.The minimum sales revenue required to balance.
Formula: Sales revenue at the preservation point = fixed cost / marginal
contribution rate
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Reflect the safe operation boundaries of
the enterprise. Actual salesIf the income is higher than the capital
protection point, the enterprise will make a profit; if it is lower than the
capital protection point, the enterprise will lose money. Analyzing the
capital protection point is helpful in formulating sales targets and risk
warnings.
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4
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Operating profit
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The profit brought by the main business
of the enterprise, that is, the balance after deducting all costs from sales
revenue.
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Reflecting the profitability of the main
business of the enterprise, it is an important indicator to measure the
operating results of the enterprise. Analyzing the changes in operating
profits helps to find problems in cost control, sales strategies and other
aspects.
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5
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Fixed cost expenses
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Costs that do not change with changes in
production and sales volume within a certain period of time and business
volume, such as rent, wages, depreciation, etc.
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The level of fixed cost affects the
operating leverage and risk level of the enterprise. Analyzing fixed costs
helps to optimize the cost structure and improve the risk resistance of
enterprises.
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6
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Variable cost expenses
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Costs that change with sales, such as
commodity procurement costs, transportation fees, etc.
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The proportion of variable costs is high,
and enterprises respond flexibly to market changes. Analyzing variable costs
helps to control the cost of single products and improve the marginal
contribution rate.
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7
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Changes in average unit price
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Changes in the average sales unit price
of goods.
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Reflect the changes in product structure,
market demand and pricing strategy.The increase in unit price may increase
profits, but attention should be paid to the impact on sales.
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8
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Changes in sales quantity
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Changes in the quantity of commodity
sales.
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It directly affects sales revenue and
profits. Analyzing sales changes is helpful to evaluate the effects of market
expansion, promotional activities, etc.
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9
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Changes in average unit cost
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Changes in the average unit cost of
commodities.
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Reflect the cost control ability of
procurement, production, logistics and other links. The decline in unit cost
helps to increase the profit margin.
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Ten
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Unit change Cost change
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The change of the variable cost required
for the sale of one unit of goods.
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Affect the marginal contribution rate.
The unit variable cost has decreased, and the profitability of the enterprise
has been enhanced.
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11
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Changes in fixed costs
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Changes in the total amount of fixed
costs.
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The increase in fixed costs will increase
the cost protection point and increase the operating risk. We need to pay
attention to the fixed cost changes brought about by expansion, equipment
renewal, etc.
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12
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Changes in operating profit
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Changes in the increase or decrease of
operating profits.
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Comprehensively reflect the changes in
sales, cost, expenses and other factors.Analyzing profit changes helps to
find problems and rooms for improvement in business management.
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13
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Change of capital protection point
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Changes in the sales revenue of the
protection point.
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Reflect the changes in the boundaries of
enterprise safe operation. If the capital protection point rises, the risk of
the enterprise will increase; if the capital protection point rises, the
security will increase.
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14
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Income changes
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Changes in the increase or decrease of
sales revenue.
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Analyzing income changes can judge the
impact of factors such as market environment, product competitiveness and
marketing effect.
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3.2 Power BI Visualization Scheme
4. Analysis and interpretation
Business status:The company's current operating profit is 4,166,819, and the
marginal contribution rate is 35.62%, indicating that 35.62% of the sales
revenue per unit is used to cover fixed costs and profits.
Cost structure:Variable costs account for a relatively large (67.2%), mainly
composed of sales costs; among fixed costs, operating costs account for the
highest proportion.
Sensitivity analysis:When the average unit price increased by 10%, the operating profit
increased significantly to 14,254,430 (an increase of 242.09%), the sales
revenue of the capital protection point fell to 76,592,040 (down 14.11%),
showing that changes in unit prices have a greater impact on profits and
capital protection points.
The relationship between the
original-quantity-profit:The sales revenue of the
capital protection point is 89,177,659. The current sales revenue (100,876,097)
has exceeded the capital protection point, and the company is in a profitable
state. The marginal contribution rate is 41.47%, which further verifies the
company's profitability and cost control ability.
5. Application effect
Optimize the cost structure:Focus on the sales cost in the variable cost and the operating cost
in the fixed cost, and seek ways to reduce costs.
Increase the unit price:The increase in unit price has a significant positive impact on
profits, which can be considered by improving product value or market
positioning.
Sales strategy:Maintain or increase sales volume to further increase operating
profits.
The above suggestions are based on the data
provided by this analysis, and the specific operation needs to be adjusted
according to the actual situation of the company.