A company wants to look at their YoY margin % changes on an absolute basis. (ex. if margin in '22 was 50% and margin in '23 was 80%, break out the drivers of the 30% change). I'm having difficulty getting to an answer because when you isolate revenue Yoy to find COGS driver, you get a different answer than if you isolate cogs driver to find revenue impact first.
I tried to simplify an example below to show the mechanics. In (x-y)/x = z, x=revenue, y=cogs, and z= profit margin %.
In scenario A (of (x-y)/x=z), x=4 and y=2, so z= 2/4 or 50%. In scenario B (of (x-y)/x=z), x=5 and y=1, so z= 4/5 or 80%. Z went from 50% to 80% between scenario A and B. Z increased 30% points. Can you break the 30% change into drivers? How much did the change in x contribute to the 30% change and how much did the change in Y contribute to the 30% change? The answer must add up to 30%. (example x=15% y=15%)
- 1338 views
- Clock Problem
- Find the coordinates of the point $(1,1,1)$ in Spherical coordinates
- I really can't figure out equations with a power of 2 in it, please solve these and explain every step as if I was a baby.
- Finding values of k for different points of intersection
- Calculating Speed and Velocity
- College Algebra 1
- There are a total of 95 coins, quarters and dimes, and the total is $15.35. How many dimes are there ?
- Module isomorphism and length of tensor product.