Parallel periods

The Power Pivot add-in allows you to make different calculations depending on the time period in which the sales occurred, by writing formulas in DAX language. To use these features you need to have one of the latest versions of Microsoft Office Pro Plus. Since many do not have this feature, it remains only to deal with the traditional lookup functions about which application I’ll write in following „recipe“.

C/S ratio

How good are the sales results? There are many indicators that can be used to control sales, and one of them is a C/S ratio. It represents the relationship between the contribution (aka difference in price, earnings, margin) and the amount of sales. By monitoring this indicator we can track change of earnings through time and that can show us how well a trade margin is formed.

Finance tables

How much will our money be worth in the future? Calculating the future and present value of the cash flow is a complex mathematical process. Today it’s easy, because Excel has a class of functions that only deal with this area. Sometimes, in order to facilitate the assessment of the justification of the investment, the so-called “Financial tables” containing discount rates were used to calculate values for the given interest rates and time periods.

Cash flow plan

Many companies that have excellent sales results are bankrupt because they do not have enough cash! Therefore, it is necessary to plan and monitor cash flows. This is not always easy, but with an experienced accountant and defined contracts with buyers and suppliers, it is possible to create a plan that allows us to track inflows and cash outflows and, based on this, we can have a better insight into the business.

Marginal costs

Marginal costs in the economy are those generated by the production of an additional product unit, while in accounting they correspond to the average variable costs. By distinguishing between variable and fixed marginal costs, we can easily calculate whether to accept a special order or to discard the product. Let’s see it on the case of profitability of production under the private label.