Financial Performance _ Sports Company
About this project
Business Objective
How the business is doing?
Which business line is profitable or not?
Where the business needs to reduce the cost?
Key Findings
Sports Company is doing well for 2023 full year with $ 17.56 M revenue for all product/service.
Net profit for 2023 full year is $4.31 M which is 24.57% of margin.
As for the business lines, Sports equipment revenue is the highest among three business.
Revenue is $8.91 M, $6.81M and $1.84M respectively for (Sports equipment, Sportswear and Nutrition and Food supplements)
Net profit is $2.29M, $2.74M and -$0.71M respectively for (Sports equipment, Sportswear and Nutrition and Food supplements)
Net profit margin for Sportswear is 40.20% which is higher than Sports equipment of 25.71%.
While Sportswear's cost ratio to revenue is 54.29%, Sports equipment's cost ratio to revenue is 69.68%.
Sportswear business line is profitable than others.
Nutrition and Food Supplements is losing the business because it spend more than revenue which is 30% more than the revenue
Recommendations
To get profitable for Nutrition and Food Supplements, the company needs to reduce cost in Labor and Materials for COGS and Marketing, Payroll and R&D for OPEX.
Sports equipment has the highest revenue than others. If we can reduce its labor cost, the net profit margin might get increased.
