Unlocking Financial Insights: A 2023 Performance Analysis of Sporting Goods Manufacturer

Project:

This project was a part of ONYX DATA - DATA DNA Dataset Challenge for August 2024- Announced as the WINNER of the challenge- August 2024.

Problem Statement:

The aim of this month’s data challenge is to analyze the financial performance of a sporting goods manufacturer with three business lines: Sports Equipment, Sportswear, and Nutrition & Food Supplements. The dataset includes revenue and expense data, split by month and business line.

Tool used: Microsoft Power BI

Report Overview:

This report provides a comprehensive overview of the financial performance of a sporting goods manufacturer with three business lines: Sports Equipment, Sportswear, and Nutrition & Food Supplements. It gives insights into various metrics such as sales revenue, cost of goods sold (COGS), gross profit, operating expenses (OPEX), and net income on a monthly and quarterly basis for 2023.

Executive Summary:

1. KPIs: Calculated KPIs such as Sales revenue, COGS Ratio, Gross margin, OPEX margin, EBIT margin, and Net Income Margin to evaluate the success and performance of a business in achieving its objectives, and these financial metrics are commonly used to assess the financial health and profitability of a company. These metrics are calculated as percentage of Sales Revenue.

2. Statement Breakdown: The waterfall chart emphasizes on major expenses and incomes contributing to profitability.

3. Revenue vs. Expenses: The line chart tracks monthly trends in total revenue and total expenses for the year 2023.

4. Business Line Comparison: The table provides a comparison of key financial metrics across the three business lines- Sports Equipment, Sportswear, and Nutrition & Food Supplements. Conditional formatting has been applied to highlight best and worst figures.

5. Breakdown by Business Line: Two major contributing expenditure categories- COGS and OPEX are further segregated into their respective sub-categories to evaluate the most expensive sub-categories which are contributing to high total expenses.

Performance trends over time:

1. KPIs: It gives insights into various metrics for the selected month (using slicer) and their comparison against the previous month's values as well as Month-over-Month growth rates.

2. Trends over time: Use the drill down and drill up options to switch between the Quarterly and Monthly trends. Furthermore, Choose a metric to switch between different indicators and observe trends over time.

3. Business line contribution in Total revenue: The stacked bar chart breaks down Total Revenue by Quarter across the three business lines (Nutrition and Food Supplements, Sports Equipment, and Sportswear).

4. Business line contribution in Total expenses: The stacked bar chart breaks down Total Expenses by Quarter across the three business lines (Nutrition and Food Supplements, Sports Equipment, and Sportswear).

Income Statement of a Company:

This shows an annual income statement for a company, detailing monthly and yearly totals for various financial metrics from January to December 2023. Use the drill down and drill up options to switch between Quarterly and Monthly views.

Challenges Observed & Recommendations:

This summarizes all the challenges/insights observed during the analysis and appropriate actions/solutions have been recommended to improve the financial performance of a company for upcoming years.