Differences

This shows you the differences between two versions of the page.

--- paid_analysis [2023/10/04 15:23] – [Profit Potential Analysis] pimsadmin
+++ paid_analysis [2024/03/19 11:54] (current) – pimsadmin
@@ Line 3: / Line 3: @@
 ===== Home =====
 Paid users can select up to 4 years of data for analysis, and, if you have paid for more than one business to analyse, you can click the + button to create a new business.
-{{ :paid1.png?nolink&600 |}}
+{{ :newpar1.png?nolink&400 |}}
-If you have already entered data for the business, you can click on the **View Analysis** button to go straight to the output screen, otherwise press the **Next** or **Edit** input data button to progress to the Profile screens to enter your data.
+If you have already entered data for the business, you can click on the **View Analysis** button to go straight to the output screen, otherwise press the **Next** or **Edit input data** button to progress to the Data Input screens to enter your data.
 ===== Data Input =====
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 {{ :paid17.png?nolink&600 |}}
 \\
-The Profitability Section contains twocharts split into 5 segments (quintiles).\\
+The **Profitability** Section contains two charts split into 5 segments (quintiles).\\
-The first shows the distribution of PAR ROS {{ :paid18.png?nolink&400|}}for businesses with similar capital intensity to yours, and is a measure of how your PAR ROS (represented as a range between 2 black bars) compares. The charts is divided into 5 ranges (or quintiles) with the middle bar representing average values. In this case the range of PAR for this business is above average, i.e. it's potential is above average.
+The first shows the distribution of PAR ROS {{ :paid18.png?nolink&200|}}for businesses with similar capital intensity to yours, and is a measure of how your PAR ROS (shown as a horizontal line) compares. The charts is divided into 5 ranges (or quintiles) with the middle bar representing average values. In this case the range of PAR for this business is above average, i.e. it's potential is above average.
-The second chart shows the quintiles of the {{ :paid19.png?nolink&400|}}expected distribution of Return on Sales for businesses like yours and your actual return on sales plotted on it. If you are in the middle category you are close to your expected PAR, which we would expect to be in this range. Below this, you are underperforming your strategic position and should look at your cost profile for potential improvements. Above it, you are probably outperforming your strategic potential and need to address strategic improvements to maintain that performance.
+The second chart shows the quintiles of the {{ :paid19.png?nolink&200|}}expected distribution of Return on Sales for businesses like yours and your PAr and actual return on sales plotted on it, with your PAR central in the middle category. If you are in this category you are performing close to your expected PAR. Below this, you are underperforming your strategic position and should look at your cost profile for potential improvements. Above it, you are probably outperforming your strategic potential and need to address strategic improvements to maintain that performance.
-Impacts on Profit Potential
+**Impacts on Profit Potential**
-This section divides the factors affecting expected profitability into 3 sections and shows their relative impact on expected profitability. In this example there is a big positive impact from the cost and capital structure, indicating a strong financial position, a slight positive impact from the market environment factors and a vert small impact from the competitive position factors indicating that there may be a weak quality and / or relative market share.
-Key Drivers of Profitability and Growth
+This section shows the impacts of the variousequation terms on expected (PAR) profitability.
+The left side shows the impacts of the factors grouped into 3 categories: your competitive position; market environment; and cost and capital structure. If you have entered data for a single year the impacts are shown as a bar chart with categories having a negative impact shown in red and those having a positive impact on expected profitability in green: If you have entered data for more than 1 year, the barchart for each year can be displayed as well as a line chart showing the changes over time. To the right if the screen the detailed breakdown for each category is shown. If the category chart is the time series chart, the detail chart is also shown over time as below: If a single year is displayed for the category chart, then the detailed impacts for that year are shown to the right: In both cases the category to be displayed can be selected from the drop down menu above the chart. If the category chart is a bar chart you can click on the bar to display the details for that category.
+\\
+**Key Drivers of Profitability and Growth**
+{{ :parfree9.png?nolink&600 |}}
 The bottom section shows two charts. To the left are charts detailing the relationship between key factors and profitability and growth from the PIMS research database with your data plotted in the same way as in the input sections. The chart to the right shows the distribution of that data in the PIMS database as a Box and whiskers chart, the end points represent the maximum & minimum and the box the middle 50% of businesses for that variable.
+\\
+==== Strategic Peer Analysis ====
-Strategic Peer Analysis
 Next: [[par ros|The PAR ROS Model]]