After building the Revenue and Margin Analysis report page it is time to add the expenses data and create the Income Statement page.
Also known as the Profit and Loss Statement, it is one of the three important financial statements used for reporting and tracking a company’s financial performance over a specific accounting period, with the other two key statements being the Balance Sheet and the Cash Flow statement. The Income Statement compares revenue and expenses to see if we have profits or loss, that’s why it’s called also as Profit and Loss statement or PnL.
Vertical and Horizontal Analysis
Vertical analysis is a method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement. In our example we start with Gross Revenue all the way down to Operating Income.
Horizontal analysis, or trend analysis, is a method where financial statements are compared to reveal financial performance over a specific period. Here we have data for one year only so the comparison will be on a Month over Month trend (MoM).
The KPI Cards
The Cards display five key metrics: Revenue, Costs, Expenses, Operating Income, and percentage of Operating Income.
Based upon the selection on the top left filter or the visuals below, the figures are dynamic and display the selection you make.
Month over Month trend
The Waterfall Chart is one of the best visuals for trend analysis as it is built to show a running totals and monthly figures.
The PnL matrix
Finally and most importantly we have the PnL matrix which incorporates both the Vertical and Horizontal Analyses. We can drill down to each Account Header and Subheader. Each column shows the PnL value and the corresponding trends for VA and HA in percentage. The arrows are color coded to indicate the trend.
There are two buttons on the left to navigate between the Revenue and Margin Analysis and the Income Statement pages.