What is the percentage change in Key Income Statement Drivers?

This graph on the Profitability tab shows the percentage change in Revenue, Direct and Indirect Costs.  Each plot point reports the change in 12 months of data to that plot point versus the 12 months of data to 1 month prior.

• Blue dot is 12 months revenue to this month v 12 months revenue to last month.
• Red dot is 12 months direct costs to this month v 12 months direct costs to last month.
• Orange dot is 12 months indirect costs to this month v 12 months indirect costs to last month.

If the blue dot is higher than the red dot margins are improving.

If the blue dot is below the red dot margins are eroding.

The ideal position of the orange dot depends on the variability of your indirect costs. If they are 50% variable we would expect to see the orange dot at half the level of the blue dot.

• If it is higher, more money has been spent on indirect costs than expected. This may be due to waste, catch-up expenditure, or strategic J-curve expenditure.
• If it is lower, less money has been spent on indirect costs than expected.