03 / Profitability & Cost Analysis
Understand profitability by product, customer or location.
Kiva Analytics helps businesses analyse revenue, relevant costs and margins to understand where profit is being generated and where it is under pressure. This component supports a wider Kiva management intelligence engagement, with coverage defined in the proposal.
Part of the Management Intelligence System
ContactGross margin
= €60,000 gross profit
The reporting challenge
Look beyond total sales.
Higher sales do not always produce higher profit. Changes in prices, discounts, product mix and costs can affect the result.
Who is this service for?
Profitability analysis is for management and finance teams who need to understand product, customer or location margins rather than total sales alone.
Built around your questions
Questions we help investigate
KPIs are key performance indicators: agreed measures of business performance.
- 01
Which products generate the highest contribution?
- 02
Which customers cost more to serve?
- 03
Where are margins declining?
- 04
How do discounts and returns affect profitability?
- 05
How do branches or departments compare?
Agree the calculations before comparing results.
We agree which revenue and costs belong in the analysis, how shared costs are allocated and what the available data can support. Assumptions and limitations are documented.
What data is required?
Kiva needs sales, discounts, returns and relevant cost records by period, with product, customer or location references where available. Cost allocations require an agreed basis. The available data determines whether gross profit, contribution or a more complete profitability measure can be supported.
The number of agreed sources, reporting areas, companies and locations affects scope. Data quality, access, integrations and reporting requirements also affect the work. Custom application programming interfaces (APIs), extensive remediation and advanced forecasting are separately scoped.
Management Intelligence Systems start at €12,500 for one agreed priority area; Group Performance & Consolidation Systems start at €25,000. Microsoft licences, cloud services and other external costs are excluded unless included in the proposal. We agree deliverables, revisions, support limits, timeline and price before work starts.
View Services & Pricing and detailed scope limitsAn example in practice
A relevant sample report
This sample shows the measures and comparisons a report can provide. Actual content depends on your questions and available data.
Jan–Mar · Sample actuals
Revenue
€328,000Direct costs
€212,000Gross profit
€116,000Gross margin = gross profit ÷ revenue. Shared operating costs are not allocated to products; these figures are not net profit.
Illustrative report using sample data. This is not a client result.
Start with your management priorities.
Tell Kiva what you need to understand and which systems you use. A free 30-minute call helps establish whether a management intelligence engagement is a suitable fit.