Remove Balance Sheet Remove Industry Remove Operations Remove Sales
article thumbnail

Bank Profitability: Decoding the Income Statement

Tom Spencer

A bank’s income statement can be simplified into five main line items: Net interest income Non-interest income Operating expenses Provision for credit losses (PCL) Tax Image 1: Illustrative example of a bank’s income statement Source: CIBC’s 2022 Annual Report 1. The biggest swing in operating expenses is likely to be variable compensation.

Banking 88
article thumbnail

Boosting Business Profitability

Business Consulting Agency

In this article, we will delve into how business consultants can drive profitability for organizations of all sizes and industries. This includes scrutinizing income statements, balance sheets, and cash flow statements. Sales and Marketing Optimization Sales and marketing are pivotal to revenue generation.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Unlocking Business Profit Potential

Business Consulting Agency

Review income statements, balance sheets, and cash flow to identify areas that impact profitability. It might involve cost reduction, pricing optimization, revenue growth, or operational efficiency. Consider their track record, industry knowledge, and commitment to collaboration.

article thumbnail

Overcoming Data Collection Challenges in Consulting

Tom Spencer

I was assigned to a typical strategy engagement – should client X selling product Y increase sales in market Z? Our hypothesis was that increased sales volume would be associated with increased profitability due to economies of scale. We repeated our request a week later, but they only provided a balance sheet from the previous year.

Data 78
article thumbnail

M&A deals – benefits and drawbacks

Tom Spencer

Depending on the firm and specific role this case could be very strategic and operational like doing a market entry/growth-type case or very technical (i.e. Acquisitions occur when one company buys another company and folds it into its operations. building financial models like DCF, accretion/dilution, LBO, etc.).

article thumbnail

Customers are your ‘ace in the hole’ during uncertain times

1 to 1

After years of immense growth, there are signs of economic headwinds across industries , with higher interest rates, stock market declines, pandemic challenges, labor shortages, global political instability, and more. Firms are becoming more risk-averse and deliberate in their spending plans through the end of the year.

article thumbnail

Profitability Framework

Tom Spencer

The profitability framework can help executives, consultants and entrepreneurs to diagnose and respond to falling prices, declining sales volume, or rising costs. By comparing the business’s performance numbers with the competition you can also determine whether the problem is company specific or industry wide. Industry vertical.

Sales 104