Wondering what your thoughts are on structuring your profitabiltiy case along your financial statements (P&L at first and then evaluating the effects on others). I would intuitevly analyse the positons and then go from there to dig deeper for the root causes.
Any experiences?
Cheers
That’s a good and important question. I am glad you asked.
People with finance background normally do this. This is definitely one of the most useful approaches to profitability cases. However, interviewer in 90% cases gives you a synthesis from financial statements e.g. revenue is decreasing/stagnating, costs steadily increase last 5 years.
You should take into acoount that you still structure case as revenue and costs. And then you can use different options for deep-dives in costs:
Revenue may be divided into the classification from cash flow statement. But it is not typical for cases, as it heavily depends on a client business.
