Análisis Vertical Estado Resultados - Interpretar y Como reducir Costos y Gastos

Finanzas 24x7

11 Feb 202208:56

Summary

TLDRThis video tutorial offers a comprehensive guide to vertical analysis of financial statements, focusing on interpreting and reducing costs and expenses. It explains how to calculate each account's percentage of net sales, starting with net sales as 100%. The video highlights the importance of comparing actual results with projected values, emphasizing profit margins and suggesting strategies to enhance financial outcomes. It also discusses specific cost control measures for various business types, from commercial to manufacturing, and touches on managing non-operating income and expenses, offering practical advice for financial analysis and planning.

Takeaways

📊 The vertical analysis of financial statements involves calculating and interpreting the percentage size of each account relative to net sales.
🔢 The formula for vertical analysis is to divide each account by net sales and multiply by 100 to express it as a percentage.
💹 Net sales, which represent 100%, are calculated by subtracting returns and discounts from total sales.
📉 Managers and analysts first look at the bottom line to determine if the company made a profit or loss and compare it with the expected profit for the year.
📈 A lower profit percentage than expected indicates a need to evaluate and potentially reduce costs and expenses for better results in the following year.
🛒 Cost of goods sold is a significant expense, often representing a large percentage of net sales, and should be closely monitored and controlled.
📋 Selling expenses are crucial to manage as they can significantly impact profitability; strategies include evaluating salaries, travel costs, and marketing expenses.
🏢 Administrative expenses, which are fixed and not directly related to production or sales, should be assessed for potential reductions.
💼 Non-operating income and expenses are not controllable and are often incidental, but they can affect the net profit.
💵 Interest expenses are a significant cost for companies with debt and can be reduced by managing debt levels and financing strategies.
💼 Taxes are a necessary expense, and strategies to manage them include timely payments to avoid penalties and maintaining accurate financial records.

Q & A

What is vertical analysis of an income statement?
-Vertical analysis of an income statement involves expressing each line item as a percentage of net sales to understand the proportion of each account relative to net sales.
How is the formula for vertical analysis calculated?
-The formula for vertical analysis is calculated by dividing each account or line item by net sales and then multiplying by 100 to get the percentage.
What are net sales in the context of vertical analysis?
-Net sales in vertical analysis refer to the result of subtracting returns and discounts from total sales, which serves as the base for calculating percentages of other income statement items.
How does one perform the calculation for vertical analysis in a spreadsheet?
-In a spreadsheet, one would divide each line item by net sales, use the fill handle to copy the formula down the column, and format the cells to display percentages with two decimal places.
What does it mean if net sales represent 100% in vertical analysis?
-If net sales represent 100% in vertical analysis, it means that the calculation is normalized, and all other figures are shown as a percentage of these net sales.
What is the significance of comparing the results of vertical analysis to projected values?
-Comparing the results of vertical analysis to projected values helps in evaluating whether the company's actual performance aligns with its financial planning and expectations.
How can a company reduce costs and expenses as suggested by vertical analysis?
-A company can reduce costs and expenses by closely examining each account, improving quality management to reduce returns, optimizing discount policies, controlling the cost of goods sold, and managing operational expenses more efficiently.
What is the role of cost of goods sold (COGS) in vertical analysis?
-In vertical analysis, COGS is a significant line item that often represents a large percentage of net sales. It's crucial for companies, especially commercial ones, to manage and potentially reduce this cost to improve profitability.
Why is it important to manage returns and discounts as part of vertical analysis?
-Managing returns and discounts is important because they directly impact profitability. Reducing returns can increase net sales and thus improve the bottom line, while managing discounts effectively can ensure that they are a strategic sales tool rather than a financial burden.
How can a company's marketing expenses be optimized according to vertical analysis?
-According to vertical analysis, a company can optimize marketing expenses by evaluating the return on marketing investment, focusing on cost-effective marketing channels like social media, and ensuring that marketing efforts align with sales objectives.
What steps can be taken to reduce administrative expenses as indicated by vertical analysis?
-To reduce administrative expenses, a company might consider measures such as evaluating and adjusting salaries, utilizing interns for basic tasks, reducing non-essential spending, promoting energy efficiency, and encouraging digitalization to cut down on paper use.

Outlines

00:00

📊 Understanding Vertical Analysis of the Income Statement

The video begins by explaining the concept of vertical analysis for income statements, focusing on calculating and interpreting costs and expenses as percentages of net sales. This method helps in evaluating the size of each account relative to net sales. The speaker provides an example, demonstrating how each account is divided by net sales and multiplied by 100 to convert it into a percentage. The importance of comparing actual results to expected gains, and reducing costs to improve profits is emphasized.

05:01

🔢 Key Accounts and Profitability Assessment

The video proceeds to discuss how to calculate profitability. Net sales are reduced by costs and expenses, such as sales costs, administrative costs, and financial expenses, to arrive at operating and net profits. It explains that achieving 20% profit means that the company earns 20 cents for every dollar of sales. If a company expects a higher percentage, such as 25%, it must reduce costs and expenses to meet the goal. The step-by-step breakdown of the income statement helps in identifying areas where cost reduction could improve future profitability.

💸 Reducing Costs and Enhancing Efficiency

The discussion shifts to analyzing costs and expenses that significantly impact profitability. Costs of sales, which account for 35% of net sales, need particular attention, especially in retail and manufacturing businesses. The speaker highlights the importance of reducing costs like raw materials, labor, and logistics without sacrificing product quality. Implementing standardization in processes can reduce material waste and improve efficiency. The aim is to manage supply costs better while maintaining product quality and avoiding unnecessary duplication of work.

🏷️ Sales Expenses and Marketing Optimization

Sales expenses, representing 14.6% of total sales, are discussed next. The video provides strategies for reducing these expenses, such as evaluating the salaries of sales staff, reducing travel and entertainment costs, and optimizing marketing efforts. Careful consideration is needed when reducing marketing costs, as effective marketing can drive sales. Leveraging social media and evaluating product profitability are other strategies proposed to enhance cost-effectiveness.

🚚 Logistics and Inventory Management

Optimizing logistics and inventory management is another major focus. By organizing delivery routes and considering outsourcing, companies can reduce transportation and warehousing costs. Proper inventory management can lower storage costs and ensure smoother logistics operations. This segment underscores the importance of balancing efficient transportation with reduced expenses.

🏢 Administrative Expenses and Resource Optimization

The video then covers administrative expenses, which account for 12% of net sales. These fixed costs include office staff salaries, utilities, and office supplies. To reduce them, the speaker suggests using interns for basic tasks, cutting back on international phone calls by using apps like WhatsApp, and encouraging staff to conserve electricity. Office supplies should be used efficiently, with efforts to digitize processes, recycle paper, and create a culture of cost-consciousness in the workplace.

🏦 Financial Expenses and Depreciation

Financial expenses, such as bank fees and interest, are explored next. Though these costs are relatively low, the speaker emphasizes their impact on overall profitability. Depreciation, representing the loss in value of assets over time, is discussed as a non-cash expense that still lowers taxable income. By reducing depreciation expenses, companies can also improve their financial health.

🛠️ Non-Operational Income and Expense Management

This section examines non-operational income and expenses, such as selling scrap materials or legal settlements. These items are uncontrollable and not part of regular business planning, but they still affect net income. Reducing non-operational expenses, such as interest on loans, can be achieved by relying on internal financing instead of external borrowing.

💰 Taxes and Profitability Strategies

Finally, the video discusses taxes, which account for 5% of net sales. Companies should aim to minimize tax liabilities by paying on time and keeping proper financial records to avoid penalties. By doing so, they can contribute to overall profitability. The video concludes with practical tips for improving financial performance, such as better cost management and strategic planning.

Mindmap

Keywords

💡Vertical Analysis

Vertical analysis is a financial analysis method where each line item in a financial statement is listed as a percentage of a base figure, such as sales or revenue. In the video, it is used to analyze the proportion of each expense or cost in relation to the company's net sales. This method helps identify which areas consume the most resources and where potential improvements can be made.

💡Net Sales

Net sales refer to the total revenue generated by a company from sales, minus any returns, allowances, and discounts. In the video, net sales are used as the base for calculating the percentage of other accounts. The presenter explains how all expenses and revenues are compared against net sales to understand the overall profitability.

💡Cost of Goods Sold (COGS)

Cost of goods sold represents the direct costs involved in producing or purchasing the goods sold by a company. This includes materials, labor, and other related production costs. In the video, COGS accounts for 35% of net sales, making it a significant component to manage for improving profitability.

💡Operating Income

Operating income, also known as operating profit, is the profit earned from a firm's core business operations, excluding deductions of interest and taxes. The video mentions that this is derived by subtracting operating expenses from gross profit. A key focus is on how companies can increase their operating income by reducing costs and expenses.

💡Gross Profit

Gross profit is the difference between net sales and the cost of goods sold. It represents the profit a company makes before deducting operating expenses. The video explains gross profit as an important indicator of how efficiently a company is producing or purchasing its goods relative to its sales.

💡Administrative Expenses

Administrative expenses are the costs associated with the general management of a company. These expenses include salaries of office staff, utilities, and office supplies. The video explains that administrative expenses are fixed costs, and suggests that companies can reduce these by implementing cost-saving strategies like using interns or optimizing office supply purchases.

💡Depreciation

Depreciation refers to the reduction in the value of an asset over time due to wear and tear or obsolescence. In the video, depreciation is considered a non-cash expense that affects profitability, but it is tax-deductible, making it useful for reducing taxable income. The video also highlights that depreciation does not directly impact cash flow.

💡Financial Expenses

Financial expenses are costs incurred by a company for activities related to financing, such as interest payments on loans or fees for financial services. In the video, financial expenses are shown to represent 15% of the company's costs, emphasizing the importance of managing debt and financing activities effectively to maintain profitability.

💡Sales Discounts

Sales discounts are reductions in price offered to customers as an incentive for early payment or to encourage purchases. The video explains that discounts represent 3% of the company's total sales and highlights the importance of balancing discount strategies to increase sales without eroding profit margins.

💡Tax Planning

Tax planning involves strategies aimed at reducing a company's tax liabilities within legal bounds. The video discusses how timely payments and proper documentation can help businesses minimize taxes and avoid penalties. It emphasizes that reducing tax expenses can directly improve a company's net income.

Highlights

Introduction to vertical analysis of financial statements, focusing on understanding cost and expense percentages relative to net sales.

Explanation of how to calculate vertical analysis by dividing each account by net sales and multiplying by 100 to get percentages.

Net sales are calculated by subtracting returns and discounts from total sales.

Demonstration of calculating vertical analysis using a spreadsheet, emphasizing the process of copying formulas down a column.

The importance of comparing the results of the analysis with the company's projected financial planning figures.

Analysis of the impact of returns on net sales, highlighting the need for quality management improvement.

Discussion on the significance of discounts as a percentage of total sales and strategies to manage discount policies.

Examination of cost of goods sold as a major expense and strategies for cost reduction in both commercial and manufacturing enterprises.

Identification of sales expenses as a significant cost and suggestions for reducing expenses related to sales and customer interaction.

Recommendations for optimizing marketing expenses, including the use of social media and evaluating the return on marketing investment.

Analysis of administrative expenses and strategies to reduce fixed costs, such as salaries and office supplies.

Explanation of financial expenses, including bank commissions and strategies to manage these costs effectively.

Discussion on depreciation as a non-cash expense and its impact on the company's financial statements.

Identification of non-operational income and expenses as uncontrollable items and their impact on net profit.

Analysis of interest expenses as a significant cost and strategies to reduce reliance on borrowed money.

Discussion on corporate income tax as a percentage of net sales and strategies to manage tax obligations effectively.

Encouragement for viewers to continue learning about financial analysis and the practical applications in business management.