Operational Analysis 01
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Operational Analysis 01 as PDF for free.
More details
- Words: 941
- Pages: 10
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis First of the Series of Presentations The Basis Analysis for Some Companies
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Basis Income Statement
Balance Sheet
Revenues Cost Of Goods Sold [COGS] Sales, Genl. & Admn. [SG & A] Expenses
Current Assets
Cash & Equivalents Net Receivables
Working Capital
Inventories Other Current Assets
Current Liabilities Accounts Payable Sub level elements are / can be taken Guideline:- elemental value > 1% of Revenues
Short Term Debts Other Current Liabilities
These elements are taken as Inputs Values from Management Reports [at least for 3 years] Available in public domain or from company sources
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Basis Income Statement
Balance Sheet
Revenues Cost Of Goods Sold [COGS] Sales, Genl. & Admn. [SG & A] Expenses
Current Assets
Cash & Equivalents Net Receivables
Working Capital
Inventories Other Current Assets
Current Liabilities Accounts Payable Short Term Debts Other Current Liabilities
A software for analysis is developed by me The software computes CAGR [Compounded Annual Growth Rate] for each element Also each element as % of Revenues
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Basis Income Statement
Balance Sheet
Revenues Cost Of Goods Sold [COGS] Sales, Genl. & Admn. [SG & A] Expenses
Current Assets
Cash & Equivalents Net Receivables
Working Capital
Inventories Other Current Assets
Current Liabilities Accounts Payable
The ‘Speeds of all elements in the entire Operational Chain need to be smoothened out’
Short Term Debts
CAGR of Revenues being the governing speed
Other Current Liabilities
The software identifies and segregates the elements as Well Managed Needs to be improved Course Correction needed of what I call as ‘Knee-Jerk’ reactions
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Example Income Statement
Balance Sheet
Revenues [23.4%; 100%]
Legend: [CAGR%; As % of Revenues]
COGS [24.3%; 76%] Areas that are
SG & A [8.3%; 7%]
CA [17.6%; 44%]
Cash [14.7%;8%] Receivables [20%; 24%]
WC [6.1%; 5%]
Inventories [19.1%; 6%] Other CA [12.9%; 7%]
CL [19.8%; 40%] Payable [23.2%; 10%]
TOYOTA
ST Debts [18.3%; 17%] Other CL [19.6%; 14%]
Well Managed Needs to be improved Course Correction needed of what I call as ‘Knee-Jerk’ reactions
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Example Income Statement
Balance Sheet
Revenues [28.6%; 100%]
Legend: [CAGR%; As % of Revenues]
COGS [28.7%; 73%] Areas that are
SG & A [26%; 21%]
CA [21%; 34%]
Cash [-2%; 4%] Receivables [31.8%; 11%]
WC [17.2%; 8%]
Inventories [17.5%; 9%] Other CA [11.6%; 5%]
CL [22.1%; 27%] Payable [21%; 13%]
Suzuki Motor
ST Debts [12.2%; 4%] Other CL [29.4%; 11%]
Well Managed Needs to be improved Course Correction needed of what I call as ‘Knee-Jerk’ reactions
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Example Income Statement
Balance Sheet
Revenues [19%; 100%]
Legend: [CAGR%; As % of Revenues]
COGS [19.3%; 67%] Areas that are
SG & A [21.6%; 26%]
CA [22.9%; 49%]
Cash [23.2%;10%] Receivables [20.2%; 21%]
WC [52.7%; 11%]
Inventories [23.1%; 10%] Other CA [31.5%; 9%]
CL [17%; 39%] Payable [17.5%; 10%]
Honda Motor
ST Debts [8%; 12%] Other CL [28.7%; 19%]
Well Managed Needs to be improved Course Correction needed of what I call as ‘Knee-Jerk’ reactions
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Example Income Statement
Balance Sheet
Revenues [2.5%; 100%]
Legend: [CAGR%; As % of Revenues]
COGS [5.7%; 79%] Areas that are
SG & A [-6%; 11%]
CA [4%; 129%]
Cash [38.5%;40%] Receivables [8.5%; 81%]
WC [8.6%; 114%]
Inventories [24.2%; 12%] Other CA [-11.7%; 23%]
CL [-27.5%; 14%] Payable [6.4%; 14%]
Ford Motor
ST Debts Other CL [-38.1%; 6%]
Well Managed Needs to be improved Course Correction needed of what I call as ‘Knee-Jerk’ reactions
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Example Income Statement
Balance Sheet
Revenues [1.8%; 100%]
Legend: [CAGR%; As % of Revenues]
COGS [1.4%; 74%] Areas that are
SG & A [-7.1%; 8%]
CA [18.4%; 287%]
Cash [29.5%;43%] Receivables [21.2%;205%]
WC [22.7%; 219%]
Inventories [10.8%; 8%] Other CA [7.8%;42%]
CL [6.5%; 68%] Payable [2.5%; 15%]
General Motors
ST Debts Other CL [7.9%; 53%]
Well Managed Needs to be improved Course Correction needed of what I call as ‘Knee-Jerk’ reactions
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
More to Follow • Next presentation – Analysis for some more companies from across industry segments
• Third presentation – Approach to implementation – Identification of projects with defined objectives
• Fourth and subsequent presentations – Few more case studies, some as desired by the group
Operational Analysis First of the Series of Presentations The Basis Analysis for Some Companies
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Basis Income Statement
Balance Sheet
Revenues Cost Of Goods Sold [COGS] Sales, Genl. & Admn. [SG & A] Expenses
Current Assets
Cash & Equivalents Net Receivables
Working Capital
Inventories Other Current Assets
Current Liabilities Accounts Payable Sub level elements are / can be taken Guideline:- elemental value > 1% of Revenues
Short Term Debts Other Current Liabilities
These elements are taken as Inputs Values from Management Reports [at least for 3 years] Available in public domain or from company sources
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Basis Income Statement
Balance Sheet
Revenues Cost Of Goods Sold [COGS] Sales, Genl. & Admn. [SG & A] Expenses
Current Assets
Cash & Equivalents Net Receivables
Working Capital
Inventories Other Current Assets
Current Liabilities Accounts Payable Short Term Debts Other Current Liabilities
A software for analysis is developed by me The software computes CAGR [Compounded Annual Growth Rate] for each element Also each element as % of Revenues
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Basis Income Statement
Balance Sheet
Revenues Cost Of Goods Sold [COGS] Sales, Genl. & Admn. [SG & A] Expenses
Current Assets
Cash & Equivalents Net Receivables
Working Capital
Inventories Other Current Assets
Current Liabilities Accounts Payable
The ‘Speeds of all elements in the entire Operational Chain need to be smoothened out’
Short Term Debts
CAGR of Revenues being the governing speed
Other Current Liabilities
The software identifies and segregates the elements as Well Managed Needs to be improved Course Correction needed of what I call as ‘Knee-Jerk’ reactions
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Example Income Statement
Balance Sheet
Revenues [23.4%; 100%]
Legend: [CAGR%; As % of Revenues]
COGS [24.3%; 76%] Areas that are
SG & A [8.3%; 7%]
CA [17.6%; 44%]
Cash [14.7%;8%] Receivables [20%; 24%]
WC [6.1%; 5%]
Inventories [19.1%; 6%] Other CA [12.9%; 7%]
CL [19.8%; 40%] Payable [23.2%; 10%]
TOYOTA
ST Debts [18.3%; 17%] Other CL [19.6%; 14%]
Well Managed Needs to be improved Course Correction needed of what I call as ‘Knee-Jerk’ reactions
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Example Income Statement
Balance Sheet
Revenues [28.6%; 100%]
Legend: [CAGR%; As % of Revenues]
COGS [28.7%; 73%] Areas that are
SG & A [26%; 21%]
CA [21%; 34%]
Cash [-2%; 4%] Receivables [31.8%; 11%]
WC [17.2%; 8%]
Inventories [17.5%; 9%] Other CA [11.6%; 5%]
CL [22.1%; 27%] Payable [21%; 13%]
Suzuki Motor
ST Debts [12.2%; 4%] Other CL [29.4%; 11%]
Well Managed Needs to be improved Course Correction needed of what I call as ‘Knee-Jerk’ reactions
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Example Income Statement
Balance Sheet
Revenues [19%; 100%]
Legend: [CAGR%; As % of Revenues]
COGS [19.3%; 67%] Areas that are
SG & A [21.6%; 26%]
CA [22.9%; 49%]
Cash [23.2%;10%] Receivables [20.2%; 21%]
WC [52.7%; 11%]
Inventories [23.1%; 10%] Other CA [31.5%; 9%]
CL [17%; 39%] Payable [17.5%; 10%]
Honda Motor
ST Debts [8%; 12%] Other CL [28.7%; 19%]
Well Managed Needs to be improved Course Correction needed of what I call as ‘Knee-Jerk’ reactions
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Example Income Statement
Balance Sheet
Revenues [2.5%; 100%]
Legend: [CAGR%; As % of Revenues]
COGS [5.7%; 79%] Areas that are
SG & A [-6%; 11%]
CA [4%; 129%]
Cash [38.5%;40%] Receivables [8.5%; 81%]
WC [8.6%; 114%]
Inventories [24.2%; 12%] Other CA [-11.7%; 23%]
CL [-27.5%; 14%] Payable [6.4%; 14%]
Ford Motor
ST Debts Other CL [-38.1%; 6%]
Well Managed Needs to be improved Course Correction needed of what I call as ‘Knee-Jerk’ reactions
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
Operational Analysis - Example Income Statement
Balance Sheet
Revenues [1.8%; 100%]
Legend: [CAGR%; As % of Revenues]
COGS [1.4%; 74%] Areas that are
SG & A [-7.1%; 8%]
CA [18.4%; 287%]
Cash [29.5%;43%] Receivables [21.2%;205%]
WC [22.7%; 219%]
Inventories [10.8%; 8%] Other CA [7.8%;42%]
CL [6.5%; 68%] Payable [2.5%; 15%]
General Motors
ST Debts Other CL [7.9%; 53%]
Well Managed Needs to be improved Course Correction needed of what I call as ‘Knee-Jerk’ reactions
© Ganesh Srinivasan, 2006. All international rights reserved. This information cannot be reproduced or distributed without legal permission from me [[email protected] ] or [[email protected] ]
More to Follow • Next presentation – Analysis for some more companies from across industry segments
• Third presentation – Approach to implementation – Identification of projects with defined objectives
• Fourth and subsequent presentations – Few more case studies, some as desired by the group
Related Documents
Operational Analysis 01
November 2019 8
Operational Analysis
November 2019 7
Operational Analysis 02
November 2019 5
Mission Analysis An Operational Approach.pdf
May 2020 6
Operational Amplifier
October 2019 34