Profitability Analysis Service
MeritBSC Profitability Analysis concentrates on Profit, Growth and Return on Equity (ROE) metrics at the Product/Service, Customer, Delivery Channel and Geographic Market segment levels. Why? Because this is where 80%+ of the opportunities to improve profit performance results are found.
When you have the facts on product, customer, channel and market segment profitability and growth, better decisions can be made on precisely how to improve performance. Plus this work is closest to the customer. Better business decisions get made when they are based on customers.
MeritBSC focuses on Profit, Growth and ROE because they are the quantitative measures that reflect Competitive Advantage, and they are the drivers of Market Valuation and Shareholder or Owner Value. ROE is used because it includes Balance Sheet, Income Statement and Cash Flow factors simultaneously.
Profitability Analytics can have a powerful impact on a company's performance. How powerful? Here are 3 client case summaries:
Get In Touch for answers to your questions and for a proposal for your company.
When you have the facts on product, customer, channel and market segment profitability and growth, better decisions can be made on precisely how to improve performance. Plus this work is closest to the customer. Better business decisions get made when they are based on customers.
MeritBSC focuses on Profit, Growth and ROE because they are the quantitative measures that reflect Competitive Advantage, and they are the drivers of Market Valuation and Shareholder or Owner Value. ROE is used because it includes Balance Sheet, Income Statement and Cash Flow factors simultaneously.
Profitability Analytics can have a powerful impact on a company's performance. How powerful? Here are 3 client case summaries:
- For a large regional bank, a $15 million profit improvement achieved in one year, with a 40 to 1 ratio of improved profits to fees.
- For a division of an office products technology company, a $12 million profit improvement achieved in one year, with a 24 to 1 ratio of improved profits to fees.
- For a food distributor with sales of $5 million and 10 employees, an $86 thousand profit improvement in one year, with a 3 to 1 ratio of improved profits to fees.
Get In Touch for answers to your questions and for a proposal for your company.