Interpretation of financial reports (1).pptx - INTERPRETATION OF FINANCIAL REPORTS Complete Reports need to be completed accurately and should be proof

Interpretation of financial reports (1).pptx -...

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Complete Reports need to be completed accurately and should be proof read to ensure they are correct before finalizing as important decisions will be based on what is presented in them They must be completed on time to ensure managers can take action on the information provided as soon as possible Accurate reports will assist managers make decision in the future
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Key Performance Indicators (KPI) Common KPI’s for a café operation Line item Formatted as Example Net profit % of Sales 5% Gross Profit % of Sales 70% Total Sales $ figure $500,000 Wages and Salaries % of Sales 30% Occupancy costs - rent % of Sales 8% Other Occupancy costs % of Sales 6% Stock turnover days 21 days Seats per serving person seats 20 Sales mix % % sold between menu items
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Produce The information in the report should be clear and concise (kept brief and to the point). A manager’s time is limited so the information should be presented in a easy to read manner Information should be presented in a standard format approved by the organisation so that it can be easily compared to previous reports clear and concise information to enable informed decision-making
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Sample Statistical Wage Analysis Additional Comments: Revenue has exceeded last year performance however wages have not been controlled and the result is unfavourable. This Week This Week last year Variation Total Wages $2,200 $1,700 $500 Unf Total Revenue $8,300 $7,500 $800 Unf Actual Wage % 26.5% 22.66% 3.84% Unf Budgeted Wage % 25% 25% Same
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Calculation Formulas KPI Form at Formula Sales $ Add up all sales The higher the value the better Gross Profit % % Gross profit / Total Salesx100/1 The higher the % the better Net Profit % % Net Profit/ Total sales x 100/1 The higher the % the better Food Cost % % Food Costs/ Food Sales x 100/1 The lower the cost the better Beverage Cost % % Beverage costs/ Beverage sales x100/1 The lower the cost the better Wage Cost % % Wage Cost /total Sales x 100/1 The lower the percentage the better Average Check (spend) Food $ Food Sales/Covers served The higher the value the better Stock Turnover Times Total cost of goods sold/average inventory The higher the ratio the better Occupancy % (rooms) % Rooms Occupied/ rooms available x 100/1 The higher the % the better
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