This article will cover the most essential aspects and nuances of decomposing your revenues and expenses into price, volume, assortment mix, material cost change and other contributions. You will be able to define profit drivers and killers, find the reasons behind gains or losses, and transform your business performance into meaningful insights. Get ready to become the Master of Factor Analysis!

If you want to hear “YES” from your finance team, then you are welcome to use our profitability calculators to learn how sensitive is your profit to changes of sales volumes, variations of prices and costs, and how to develop promotional activities allowing to multiply sales revenues while creating gains instead of losses.

Often referred to as volume-mix-price analysis, factor analysis of profit is indeed much more powerful and allows to perform a deep and structured analysis of profit revealing the insights and reasons behind the business’ success or difficulties.