This is the case today.
We are going to solve for our dashboard exercise, so suppose this is the PNL statement for our company
of 20-20.
And we wanted to analyze how our company is performing and how we can improve the bottom line of our
business.
Now, to analyze this further, we have also listed down the net profit and net profit margin of our
business for last six years.
Now, when we analyze this data, we realize that our net profit is increasing year on year, but our
net profit margin is first increasing and is decreasing in recent years.
No profit and profit margin is dependent on two main factors.
First is the revenue.
And second is the expense.
Profit is generally revenue minus expense.
And the reason behind low profit or low profit margin can either be a decrease in revenue or an increase
in the net expense.
So that's why we first looked at the revenue figures for the last five years.
And we also added the projections of revenue figures for the year 2020.
You can use forecasting method to predict future revenues.
And if you are interested in forecasting we have a separate course on forecasting, using Python and
forecasting using Excel so you can check it out if you are interested in how to calculate revenue projections
using forecasting.
But here we analyze that our revenue is increasing year on year and there is no decrease in profit at
such.
Now, since revenue figures are fine, next, we move on to expense figures.
Now, looking at this expense breakup, we realized that the advertising and payroll expenses are the
major contributor and have increased in recent years.
After looking at net profit revenue report cost and expense breakup.
We made the conclusion that advertisement and payroll expenses are increasing and there is a need to
control these expenses.
So for the next year, we set up a limit on advertising and payroll expense.
We set a limit of three hundred thousand on advertising and two hundred and seventy thousand on payroll
expense.
And we are constantly monitoring how much we are spending in these two categories by tracking year to
date values of these two expense.
Not till now, we only looked at the raw numbers.
But to share our findings with our colleague, we have also created a dashboard conveying the same story.
So you can see that here first, we have created a dashboard from this data where we have net profit
and net profit margin.
And here you can clearly see that.
Our profit is somewhat increasing, but our net profit is decreasing over time.
This is the same conclusion which we drew from this data.
Now, next, we looked at the revenue figures.
And from the raw numbers, we concluded that the revenue figures are fine.
From this graph as well, we can see that the revenue is fine and revenue is increasing year on year.
So next, we move on to analyze our expenses, so we draw a pie chart of the expenses of the year 2020
and you can see that a majority of the portion is because of these two buys.
First one is the advertisement by which accounts for 390000 of expense, and the second is the payroll
PPI, which accounts for three hundred and twenty three thousand of expense.
Now, next, we set a limit for our advertisement and payroll expense, and we have used column chart
to convey the same information, these are our limits and the orange part is the amount that we have
already spent and on the top.
Also, you can see the number of how much of our target limit that we have achieved.
So overall.
We have converted this raw data into these kind of charts, and it will be easier for us to convey the
message and convey our thinking of our analysis using the charts over this raw data.
So in this tutorial, we will see how to create these types.
And how to format these tapes to create a dashboard?