6 Knowledge Evaluation Strategies to Assist You Make Nice Monetary Statements

Lewis Chou

The yr is coming to an finish, and if any of you’re employed within the related departments of the corporate’s monetary accounting, you have to be busy getting ready numerous annual monetary statements. Particularly for newcomers who’ve simply entered this area, methods to design reviews to obviously present the monetary evaluation and enterprise operation standing is a problem.

Within the monetary statements, in comparison with conventional dense tables, charts can visualize the info and show the info extra intuitively, making the comparability, pattern and construction of the info clear at a look. This text analyzes the kinds of charts in monetary statements from abstract knowledge evaluation, improvement pattern evaluation, knowledge comparability evaluation, composition evaluation, progress evaluation, and map evaluation. I hope all of us can current actually good monetary statements on the finish of the yr.

(Observe: All of the charts and dashboards on this article are made with the BI reporting software FineReport.)

Abstract knowledge evaluation is normally used to depend key core indicators, similar to the corporate’s annual working earnings, annual consumption prices, and annual web revenue, which are sometimes the info that call makers are most involved about.

As proven within the determine beneath, we use the dashboard element of FineReport to calculate the three core indicators: the corporate’s whole annual income, annual price, and web revenue. We set the utmost vary of the dashboard to a complete income of 278 million, and allow the perform of displaying percentages. On this method, the 2 indicators of consumption price ratio and revenue margin are mechanically displayed.

Right here is one other instance of abstract knowledge evaluation.

From FineReport

Improvement pattern evaluation is normally used to visually evaluate the monetary working knowledge or monetary ratio developments of a sure steady interval of the enterprise, and to grasp the pattern of the monetary state of affairs of the enterprise over time. On the one hand, it’s potential to investigate whether or not there may be an abnormality within the knowledge improve or lower, to search out potential issues within the enterprise. Alternatively, it might additionally assist the enterprise predict the longer term monetary state of affairs and choose the event prospect.

We usually use line charts to indicate the event pattern of the corporate. The horizontal axis represents time (yr, month, and day), and the vertical axis represents indicators similar to working earnings, prices, and profitability.

The next dashboard report is an instance that mixes abstract knowledge evaluation and improvement pattern evaluation.

From FineReport

Knowledge has no worth with out comparability, and the identical is true in company monetary evaluation. By the comparability of varied indicators, we reveal the monetary standing, working circumstances and money move of the corporate. Typically talking, the reference requirements for comparative evaluation are as follows.

  • Time comparability: evaluate with the precise knowledge of the earlier interval and the identical interval of final yr.
  • Entity comparability: evaluate with the info of superior firms in the identical trade.
  • End result comparability: evaluate with the plan or price range knowledge.
  • Structural comparability: primarily based on the composition evaluation, evaluate the construction of the 2 knowledge and analyze the adjustments in monetary indicators.

Bar charts and histograms are sometimes really helpful for knowledge comparability evaluation. As well as, you need to use different charts in keeping with the precise state of affairs, similar to the road chart to indicate the stock comparability of a number of firms, and a radar chart (appropriate for fast comparability and positioning of weaknesses) can be utilized to match the classification statistics of monetary indicators.

The next dashboard makes use of bar chart, histogram, and radar chart. We are able to additionally consult with such a dashboard report when doing monetary assertion evaluation.

From FineReport

And here’s a monetary dashboard which mixes Donut chart, histogram and radar chart.

From FineReport

Composition evaluation can normally be used to investigate the info of every venture’s constituent parts, similar to gross sales composition evaluation of every product, present asset composition evaluation, and administration price composition evaluation of every division. It represents the composition of the info construction. When it comes to charts, pie charts, donut charts, share stacked bars and share stacked histograms are frequent for composition evaluation.

As well as, when it is advisable to analyze each the composition construction and the hierarchical construction of the info, multilevel pie charts are undoubtedly the only option. As proven beneath, multilevel pie chart makes it simple to calculate the proportion of gross sales in every province and metropolis.

Here’s a money move report during which pie chart and histogram are used.

From FineReport

Within the monetary statements, it’s typically crucial to indicate the progress of attaining an indicator or a process, such because the efficiency of division and the progress of reporting bills. On this case, we will use stacked column charts, stacked bar charts, and Gantt charts to show knowledge.

Lastly, I’ll introduce the info evaluation technique associated to maps. For giant enterprises, along with the headquarters, there are branches all through the nation and even the world. In state of affairs like this, utilizing maps to investigate knowledge primarily based on geographic location is extra acceptable.

From FineReport

The move map shows the interplay knowledge between the outflow space and the influx space. It’s normally expressed by the road connecting the geometric facilities of gravity of the spatial parts. The width or colour of the road signifies the move worth.

The move map is usually utilized in regional commerce, site visitors move, inhabitants migration, buying and consumption habits, communication info move, and aviation routes.

From FineReport

The heatmap is used to point the burden of every level within the geographic space. Along with the map because the background layer, it’s also possible to use different photos. And colour in a heatmap normally refers to density.

The above are the six knowledge evaluation strategies and corresponding charts that we generally use when making monetary statements, which can be utilized as a reference once you make knowledge evaluation statistics. As well as, the charts on this article are made with the BI reporting software FineReport. Its private model is free to obtain and use, and it offers many templates for newcomers to study. You’ll be able to attempt it your self.

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