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  • About Us
    • Nick Setchell – RealTime CEO
    • Vistage & TEC WorkshopsNick Setchell has been working with Vistage, the world’s largest CEO organization, since 2001.
    • NewsSee what’s happening with RealTime CEO.
    • Economic Update Report
    • Contact UsReach out to us. If you’re interested in booking Nick to give a keynote address or workshop at your conference, please include the date and location.
  • Concepts
    • Fiscal Focus Financial Statement AnalysisUnlock the hidden numbers in your P&L and balance sheet to see how you’re performing in 11 vital metrics.
    • Should We? / Can We?View, in real time, the actual financial impact of the hundreds of business decisions your team makes every month.
    • 24 Month Rolling ForecastingBlend your trailing twelve months with a rolling 12-month forecast to get a complete financial picture of your business.
    • J Curve ManagementTrack the number of investments you’re undertaking, the 3 phases of each, and the 5 rules for managing them.
    • Return on Operations – ROOView your return on operations percentage — your ROO % — the most powerful number to measure business success.
    • CEO Performance AnalysisBenchmark your performance as a private-company CEO against others in your industry.
  • Resource Center
  • Blog
  • Login
  • SUBSCRIBE

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.


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