TrendBoard Trend Analysis
TrendBoard is our tool for visualising trends in your performance data so you get an early warning of any problems more on the ScoreBoard trend analysis tool here
Key Business Indicators
12Faces is committed to helping you achieve Sustainable Business Success.
Sustainable means on-going, you need monitoring tools to check your business’s health.
Dictionary of Business Finance Terms
In TrendBoard and elsewhere in 12Faces, we refer to some of the financial analysis ratios that allow you to monitor your business.
How to Select the Next Diagnostic Step
To learn how to use the 12Faces Diagnostic Process to best advantage, click More Info.
Success Group: Shows trends factors determining your Sustainable Business Success
Click on any adverse trend for more information
- Falling Revenue: Revenue is the life blood of a business. Any fall is usually a concern.
- I KNOW why my Revenue is falling. How do I fix it?
- I DON’T KNOW why my Revenue is falling. What can be wrong?
- Falling Gross Profit: GP is Revenue minus the Cost of Goods Sold which are the direct cost of producing items for sale. COGS does not include permanent labour.
- I KNOW why my Gross Profit is falling. How do I fix it?
- I DON’T KNOW why my Gross Profit is falling. What can be wrong?
- Falling Operating Profit: Operating Profit is Gross Profit minus Overhead Costs. Nobody likes a falling Operating profit. Find solutions.
- I KNOW why my Operating Profit is falling. How do I fix it?
- I DON’T KNOW why my Operating Profit is falling. What can be wrong?
Efficiency Ratio Group: Shows changes in operating efficiency
Click on any adverse trend for more information
Efficiency Ratio will help you track down why your business results might be falling. They can also help explain adverse trends in the “Success” Group.
- Gross Margin%: This is Gross Profit divided by Revenue. It is a key to deciding if a fall in Gross Profit is due to Revenue changes or to increased Cost of Goods Sold
- Labour/Revenue%: If this is growing and;
- your revenue is in a temporary fall (inflating the ratio), you can ignore for now
- otherwise, your labour costs are going up faster proportionally than your revenue; not a good trend
- Overheads/Revenue%: If this is growing and;
- your revenue is in a temporary fall (inflating the ratio), you can ignore for now
- otherwise, your Overhead costs like labour, rent, admin are going up faster proportionally than your revenue; not a good trend
- Working Capital/Revenue%: If this is growing and;
- your revenue is in a temporary fall (inflating the ratio), you can ignore for now
- otherwise your business is using more Working Capital per $ of Revenue ; not a good trend
Cash Conversion Cycle Group: Cashflow is the heartbeat of a business
Click on any adverse trend for more information.
NOTE that this group relies on “Accrual Based Accounting” to be most accurate. If you are not doing this, treat the results with caution as they will be indicative only.
- Cashflow and Cash Conversion:
- Days AP/AR Outstanding: ideally Accounts Receivable (AR) is larger than Accounts Payable (AP) indicating you are paying debts slower than people are paying you
- Inventory Related:
- Days Inventory Outstanding is how many days of inventory you are holding at your present sales rate. Less is better generally.
Sustainability Group: A Goal of 12Faces is Sustainable Business Success
This group has several measures on the sustainability of your business.
NOTE that this group relies on “Accrual Based Accounting” to be most accurate. If you are not doing this, treat the results with caution as they will be indicative only.
TrendBoard is a Major Step Toward Your Business Sustainability
Congratulations, your use of the TrendBoardBoard means that you are heading in a positive direction within your business. Maintaining this vigilance on a monthly or quarterly basis is key to your business success. Still have questions? Contact 12Faces now.