Today we will talk about a very practical scenario: how to let the boss see the whole situation through a report?
First, let's imagine what data you'd most like to see as a boss.
1. How is the performance? Is there any money to be made? Which organizational sectors contribute the most? Which products contribute the most? What are the recent trends in performance?
2. How much did it cost? Where do you spend it? How much money do you have in your pocket? How much money is out there that hasn't been recovered?
3. How much money did you buy? How much stock is in the warehouse?
Is it enough to see this data? Inadequate. Why?
For example, we see that this month's income is 20 million, but this information alone is not enough, because we can't tell whether this 20 million is good or bad.
So how do you know if it's good or bad?
The easiest way to do this is to compare it with your goals or budget. Or it is compared with the same period last year or the previous period, which is often referred to as year-on-year and month-on-month; Then there is the whole trend change. In this way, it is possible to quickly assess whether the 20 million has changed for the better or for the worse from multiple angles.
So if we find that a data is not very good, and we want to know if it is a big problem, or we want to know why it is so, or if it is too good and it doesn't feel normal, do we need to continue to see more detailed data to verify or answer our own questions?
To summarize, for the boss, the data we provide should include:Know the current situation, know the risks, and know the details
Next, let's take the general manager's cockpit in the BI standard scheme as an example to see how to help the boss start from a report, so that he can know the current situation, understand the risks, know the details, and see the overall situation at a glance.
Enter the ** experience, and then click on the Kingdee UFIDA standard plan, you can see a report of the general manager's cockpit, and we click to open it.
First of all, we saw that the current revenue in December 2022 was 26.17 million, down 41% year-on-year and 12% month-on-month, because there was no budget data, so we couldn't see the budget completion rate. From this information, a basic conclusion can be drawn that the income is 26.17 million, and the situation is not optimistic;
Seeing that the net profit was 4.67 million, an increase of 46% year-on-year, it looks good, but the cumulative net profit this year is negative 430,000, which is not optimistic;
The balance of funds was 800,000, down 84% year-on-year and up 2% month-on-month7 times, judging from the annual income of 200 million, there are only 800,000 on the account, which is very poor in any case;
The net cash flow for the current period was 580,000, and the cumulative amount for the year was -4.24 million, which was also a bad situation;
The amount of expenses incurred in the month was 2.03 million, a year-on-year decrease of 40%, and the cost control was not bad;
There were 43.52 million accounts receivable, little change from the previous quarter;
There were 12.24 million purchase orders in the current period, and the inventory was 83.62 million, an increase of 14% year-on-year, which should be somewhat risky;
From the perspective of the organization's revenue and profit contribution, the main force is concentrated in one organization.
Judging from the revenue and profit in the past 12 months, although the revenue momentum in the second half of the year is not bad, the profit has basically been negative;
From the perspective of product sales structure, the two main product lines contributed 87% of the revenue;
From the perspective of cost structure, R&D expenses account for nearly 50%, and management expenses account for 30%;
Judging from the sales map, the company's main customers are concentrated in Guangdong;
Through this cockpit, we can basically understand several operational risks:
1. Poor revenue and net profit;
2. The cash flow pressure is also very high;
3. High inventory risk;
4. Accounts receivable are high.
Next, let's break it down in detail, click on revenue, and jump to the sales cockpit.
We found that among the top 10 customers, one customer is far ahead. Click on this customer, you can see the trend of the past 12 months in the lower right corner, showing that the revenue and gross profit are far from the previous year, whether it is the cause of the epidemic, we do not know. Then we look at the top 10 products, and find that the top 3 are all sold to the largest customer, and we can find that the risk here is that we rely too much on a certain customer, and there is no new product that can be better in the product.
Let's analyze again, why is the net profit so poor, is it because the cost is too high, or is the expense too high?
If we click on the indicator of net profit, we will jump to the income statement.
Since it's already December, let's focus on the year's total. We can see that the cumulative revenue and cost reduction this year is almost 40%, but the decline in sales, management and R&D expenses is significantly less than 40%, and financial expenses have surged by 17 times, so, overall, we can see that there was a profit of nearly 20 million last year, but this year it is in a state of loss.
Let's click on Net Cash Inflows to jump to the cash flow statement.
From the perspective of the current period, the net operating activities were -5.19 million, but the cash flow from investment and financing activities made the final net positive. So where does the cash from business activities go? It can be roughly seen that the payable decreased by 3.58 million and the receivable increased by 3.12 million, which increased the financial pressure of more than 6 million.
Let's take a look at the situation for the whole year: although the financing activities contributed more than 30 million cash flow for the whole year, because the cash flow from operating activities was negative 31.88 million, plus the investment activities were also negative 3 million, the final net cash increase was negative 4.24 million. From the perspective of capital flow, the inventory has increased by 10 million and decreased by 27 million, it can be seen that there should be some room for optimization in the management of the ** chain: why is the inventory still increasing in the case of a sharp decline in sales performance? Is there not enough diversity in business, resulting in weak negotiation power for accounts payable?
Let's click on Funds and jump to the balance sheet.
We can see that the inventory has increased by 10.44 million compared with the beginning of the year, if we want to find out whether it is the increase in raw materials or the increase in finished products?
Click on the Inventory title to jump to Inventory Analysis.
At this time, it can be seen that the raw materials have increased by 8.38 million compared with the beginning of the year, and the entrusted processing materials have increased by 7.72 million. Let's take a look at the trends of raw materials, consignment materials, and inventory goods in the past 12 months.
Raw materials and consignment materials increased from May and were higher than the same period last year, while inventory of goods was lower than the same period last year from May and decreased by 6.09 million compared to the beginning of the year. Judging from the data, when the inventory of finished products decreases, it is understandable to purchase raw materials and put them into production, is that really normal?
Let's go back to the General Manager's Cockpit and click on the inventory header to jump to the inventory cockpit.
If we look at the inventory age structure at the bottom left, we can see that the inventory amount of more than 361 days accounts for 35%, which must be problematic. Let's click on the inventory age structure to jump to the inventory age analysis report.
The linkage for more than 361 days is mainly concentrated on a certain type of material. Then click on this kind of material, you can find that the inventory of this type of material in the 91-180 days range is decreasing rapidly in recent months, so why should you digest the inventory in the 91-180 days interval first when there is a large amount of inventory of more than 361 days?
We found through the proportion of warehouses in the upper right that nearly 8 percent of these materials are stored in three warehouses, and the specific reasons need to be further on-site to understand.
Let's go back to the general manager's cockpit and click on the receivables header to jump to the receivables cockpit.
We can see that the turnover days receivable are 72 days, and the turnover can be about 5 times a year, which is not good, we can see that the balance receivable is 41.63 million, and there are 32.13 million overdue, nearly 8 percent overdue, and we see through the distribution of overdue aging that there are as many as 41.72 million overdue for more than 361 days. We can click on the title to jump to the accounts receivable aging analysis report, and through the linkage, we can know which customers are overdue for more than 361 days and which salesmen handle them.
Clicking on the expense title from the general manager's cockpit can also jump to the cost analysis, you can refer to the cost analysis we recorded earlier**. Click on the purchase amount to jump to the procurement cockpit and grasp the overall situation of procurement, so I will not analyze it here.
Through the above drilling analysis, we not only know the business risk, but also know what the cause is, or clarify the direction of solving the problem
1. Poor revenue and net profit;
Although it is due to the impact of the epidemic environment, the dependence on a single large customer and the lack of more capable products are all areas that need to be changed; At the same time, although there is no problem with cost control, R&D expenses, management expenses, and sales expenses have not been reduced simultaneously, and financial expenses have surged, resulting in profits turning from wins to losses, so it is necessary to strengthen the control of expenses.
2. The cash flow pressure is also very high;
At the same time as the decline in income, the inventory of 10 million yuan was increased throughout the year, and the payable amount of 27 million yuan was reduced, which brought additional pressure to the funds, and it was necessary to strengthen the management ability of the first business.
3. High inventory risk;
More than 1 3 inventory age of more than 361 days, and mainly concentrated in a small number of materials and warehouses, to find a way to solve.
4. Accounts receivable are high.
8% of accounts receivable are overdue, and most of them are overdue for more than 361 days, and we must also find ways to instruct the relevant salesmen to solve them.
It is impossible to complete the above analysis process with the traditional manual report method, because the above analysis process not only needs to jump more than 10 reports through layers of drilling, but also each linkage is equivalent to opening a new report. The most important thing is that under the traditional manual reporting method, we don't know what problems the boss will see at that time, how to analyze it, and we can't prepare the corresponding reports in advance.