Analysis Menu

The Analysis options enable you to view and analyze the results of the plan. These options include:

Highlights: View the highlights of the plan results

Profit and Loss: Review the projected Profit and Loss statement based on the data you entered

Operating Cash Flow: View the projected operating cash flow

Cash Flow Statement: View the projected cash flow statement

Balance: View the projected pro-forma balance sheet

Valuation: Analyze the value of the company

Financial Analysis: Analyze the Rating, Financial and Management performance of the business

Break Even: View the Break-Even point of the plan and evaluate the risk involved

What If: Analyze how changes in basic assumptions influence your plan

Goal Seek: The Goal Seek analysis assists you in finding the parameters for achieving a certain target profit.

Indicators: View the main financial indicators of the plan

ROA/ROE Analysis: Analyze the return on assets and equity

Profit Centers: View the profitability of the business profit centers

Operating Expenses: View the expenses for each department calculated to the analysis currency

Sales Analysis: The Sales Analysis screen displays the sales that are planned for the plan periods.

Actual vs. Plan: View a comparison of the actual performance of the business to the plan

Forecast: The Forecast module is meant to show the expected performance of the business till the end of the current year.

Highlights

The Highlights screen shows the main results of your business plan by periods. The columns in the table are:

Revenues: Sales revenues forecast for each period.

Net Profit: Net Profit after tax.

Net Profit (%): Net Profit as percentage of Revenues.

Operating Profit: Profit before tax and interest expenses.

Bank Balance: The projected bank balance at the end of each period. This includes the cash and the short-term borrowings in the Balance sheet.

The Highlights Graph shows the trend of the sales and net profit during the plan years.

Toolbar Buttons

All the tables include similar toolbar that appears at the top of the window and includes the following buttons:

OK - Close screen (and save all changes if applicable)

Print Table - Create a report for the current table, showing it on the print preview screen

Display full screen - Display table and graph in full screen view

Export to MS Excel file - Exports the displayed table to MS Excel

Profit & Loss

This screen presents the projected Profit & Loss report for the plan period.

The purpose of the Profit and Loss Report, sometimes referred to as Income Statement, is to show the activity and profitability of the business for a specific period, by showing the income and expenses that refer to this period. The Profit and Loss shows, in many cases, a different and even contradicting presentation of the business state compared to the Cash Flow report. A business can be very profitable but suffer from lack of cash, or it can suffer from losses but have enough cash to survive. In the long range, such a contradiction would be solved. A profitable business will manage to accumulate or borrow the required cash while a business with continuing losses will consume all its reserved cash.

The Profit and Loss report can be presented in one of two methods according to the selection you have made in the System Options screen under File menu: the Total Cost method or the Direct Cost method.

These methods are different from each other mainly in the way the costs are presented.

In the Direct Cost method, the cost of the products or services that is included in the P&L reflects only the cost of the products that were sold during the period of the report.

In the Total Cost method, the cost of the products or services includes all the expenses spent for production during the period of the report, including cost of materials and labor for products that are still in inventory and were not sold. In this method the Income (production) of the company includes both sales and change in inventory, while in the Direct Cost method, the income includes only sales.

A drill down of the Operating Expenses and the Salaries (in the Total Cost Method) rows can be accessed by double clicking on the small cross next to the description on the appropriate row. A tree like structure will be expanded and will display all the details of the expenses and salaries that you have entered in the Operating Expenses screen.

If you have checked the 'Show previous periods' option in the Preferences screen (General Parameters tab) and the plan includes previous years (as defined in the General Data screen) then the Profit and Loss screen will display data for previous years in columns that will appear before the first plan period.

If you have checked the 'Display Profit and Loss breakdown' option in the Preferences screen (General Parameters tab) then the Profit and Loss screen will enable you to see the tree orientated breakdown display of the Revenues, Operating Expenses and Salary by clicking the square at the start of the row heading.

The Profit and Loss items are as follows:

Total Cost method

Revenues: The total sales revenues in each period.

Inventory Change: The change in inventory that was made in the plan period.

Other Operating Income: Income that was entered in the Financial Parameters screen and includes specific income that is not part of the usual Sales Plan of the business.

Total Production: The sum of revenues and inventory change.

Direct Cost: Materials, labor and other costs consumed in the production according to unit cost, including inventory production.

Gross Profit: The Gross Profit of production, i.e. Total Production less Direct Production Costs.

Operating Expenses: Operating expenses entered in the Operating Expenses screens not including Salary.

Unrecoverable Debts: Debts of customers that can't be collected are regarded as an expense. The debts are calculated as a percentage of sales according to the data entered in the Financial Parameters screen.

Warranty: The cost of Warranty that the company provides to customers of its products. The Warranty is calculated according to the parameter that is entered in the Financial Parameters screen.

Provisions: Provision done for lost debts, unusable inventory, etc. They are entered in the Provisions screen as other provisions.

Salary: The salary and benefit expenses, including salary data entered in the Operating Expenses screens and Provisions for Pensions and benefits, entered in the Provisions screen.

EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization. This line is calculated by the Gross Profit less Operating Expenses, unrecoverable debts, warranty expenses, provisions and Salaries.

Depreciation: The total depreciation of fixed assets for the period. Business Planner uses the straight-line depreciation method.

EBITA: Earnings Before Interest, Tax and Amortization. This line is calculated by the EBITDA less Depreciation.

Amortization of Goodwill: The amortization of Goodwill assets that is entered in the Financial Parameters screen and the Opening Balance Influences screen.

Operating Profit (EBIT): Profit from operations before interest, taxes, and other expenses. Sometimes referred to as EBIT (Earnings Before Interest and Taxes).

Interest Income: Usually caused by a credit situation, a positive cash flow for example.

Interest Expenses: Total financial costs from borrowed funds during the period. This would include fees for loans and interest payments.

Total Finance: The sum of Financial Income less Financial Expenses.

Other Income: This item includes profit-producing activities that are not related to the principal business activity (e.g. profit from sales of fixed assets).

Other Expenses: This item includes costs that are not incurred primarily for the purpose of generating revenue.

Total Others: The sum of Other Income less Other Expenses

Income Before Taxes: The profit before tax.

Income Tax Provision: The tax provision is calculated as a percentage of income before tax.

Net Profit: The profit after tax provision.

Dividends: The dividends that share holders will receive during the plan period.

Retained Earnings Provision: The part of the earnings that is allocated for specific targets, such as renewal of old equipment.

Provision Profit: The net profit that will be accumulated to the unallocated retained earnings of the business, as presented in the Balance

Direct Cost method: In this method most of the items are similar to the Total Cost method except for the following items:

Direct Cost: Materials, labor and other costs consumed in the production according to unit cost, including only costs of units that were sold.

Production Depreciation: The Plant and Equipment screen enables to define if an investment is made for the production or operation section of the company. Depreciation of investment that was done for production purposes is calculated as production depreciation.

Production Expenses: The Departments table enables to define if a department belongs to the production or operation section of the company. Expenses of a department that belongs to the production section, appear in the Profit & Loss report as part of the gross expenses, before the Gross Profit.

Direct Cost: Materials, labor and other costs consumed in the production according to unit cost, including only costs of units that were sold.

Operating Expenses: Operating expenses entered in the Operating Expenses screens, including Salary, detailed by the departments that were defined in the Department table as belonging to the Operation section of the company.

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