Business Performance Analysis
Comprehensive monthly financial performance analysis with insights on revenue, profitability, and working capital
What’s hard about this today?
Businesses often lack comprehensive visibility into monthly performance metrics, making it difficult to identify revenue trends, margin issues, and working capital challenges. Without detailed analysis of receivables, payables, and operational efficiency, companies struggle to make informed decisions that can prevent losses and improve cash flow.
How RyzUp fixes this
Our Business Performance Analysis provides deep insights into monthly financial performance, including revenue breakdown, margin analysis, operating expenses, receivables/payables aging, and actionable recommendations for improvement.
April 2025 Performance Overview
Total Trading Income
$33,400
Gross Profit
$1,546
Net Loss
($50,593)
Total Receivables
$281,433
1. Revenue Breakdown: Streams & Key Sources
Total Trading Income (April 2025): $33,400
Consulting Revenue: $32,000 (largest source, ~95.8% of trading income)
Other Revenue: $200
Supplies Revenue: $400
Turn Key Revenue: $800
Other Income (Rental): $950
Key Insight: The business is heavily reliant on consulting activity for its core income in April 2025, while rental, supplies, and turn key work are minor contributors.
Revenue Stream Distribution
2. Gross Profit & Margin Analysis
Total Cost of Sales: $31,854.01
Gross Profit: $1,545.99
Gross Margin: 4.6%
Critical Observation: Gross margin is extremely thin in April 2025. This is noticeably lower than margins from prior months (e.g., March 2025: 42.5%).
This may be due to higher costs associated with consulting activities or an unusual increase in direct costs.
It could signal pricing issues, cost overruns, or revenue recognition timing misalignments.
Margin Trend Comparison
3. Operating Expenses: Trends & Major Items
Total Operating Expenses (April 2025): $53,088.78
Wages and Salaries: $31,190 (59% of operating expenses)
Director's Fee: $4,000
CPF Employer Contribution: $5,070.98
Office Rent: $3,580
Accounting Fee: $2,850
Staff Welfare: $1,601.24
Office Expenses: $1,783.51
Trends: Operating expenses are relatively stable compared to previous months but are substantially higher than gross profit and trading income, heavily weighted to payroll and rent costs.
Operating Expense Breakdown
Expense Category | Amount | % of Total OpEx |
|---|---|---|
| Wages and Salaries | $31,190 | 59% |
| CPF Employer Contribution | $5,071 | 10% |
| Director's Fee | $4,000 | 8% |
| Office Rent | $3,580 | 7% |
| Accounting Fee | $2,850 | 5% |
| Staff Welfare | $1,601 | 3% |
| Office Expenses | $1,784 | 3% |
| Other | $3,013 | 5% |
4. Net Profit/Loss and Implications
Net Loss for April 2025: ($50,592.79)
Net Profit Margin: -151.5%
Critical Implications: The company is operating at a substantial monthly loss, spending over 1.5x its total trading income on operating expenses in the month.
This is not sustainable and reflects either depressed revenue, excessive costs, or both.
Immediate action required to reduce costs and/or increase revenue.
5. Receivables Aging Analysis
Total Receivables: $281,433.20
<1 Month: $92,516.88 (33% of total)
1 Month: $70,358.36 (25%)
2 Months: $69,079.49 (25%)
3 Months: $18,023.95 (6%)
Older than 3 Months: $31,454.52 (11%)
Critical Concern: About 42% (3 Months + Older = $49,478.47) is significantly overdue, indicating collection risks.
Highest individual overdue balances: Client 9 ($72,095.80), Client 12 ($74,982.20), Client 7 ($45,758.86)
Timely collection is an issue; large and old receivables may require provision or escalated action.
Receivables Aging Distribution
6. Payables Aging Analysis
Total Payables: $133,749.24
<1 Month: $32,270.39 (24%)
1 Month: $24,760.90 (19%)
2 Months: $39,660.22 (30%)
3 Months: $1,765.80 (1%)
Older than 3 Months: $35,291.93 (26%)
Year End Adjustment: $38,496.56 (materially large, may be non-trade or an accrual)
Concerns: Old payables (>3 months: $35,291.93) suggest delayed payments, may risk supplier relations or indicate short-term liquidity stress.
Presence of credit balances and negative vendor lines suggest unresolved credits, possible disputes, or overpayments.
Working Capital Position
Metric | Amount | Status |
|---|---|---|
| Total Receivables | $281,433 | Aging risk |
| Total Payables | $133,749 | Delayed payments |
| Net Working Capital | $147,684 | Moderate |
| Overdue Receivables (>3mo) | $49,478 | High risk |
| Overdue Payables (>3mo) | $35,292 | Supplier risk |
7. Working Capital & Liquidity
Net Receivables less Payables: $147,683.96 (net current asset position)
However, a large portion of receivables is overdue and may not be liquid.
Conversely, 26% of payables are also overdue.
Gross receivable and payable positions outsize monthly trading activity, so delays in settlement or poor quality of either could affect solvency.
Overall liquidity is weak; the company appears reliant on collecting large, potentially old receivables just to meet outflows.
Ability to sustain operations may be at risk without strategic improvement in conversion cycles or cost reduction.
Risk Assessment & Recommendations
Strengths
Positive aspects of current position
Critical Risks
Immediate threats requiring action
Action Items
Immediate improvement priorities
Key Areas Summary Matrix
Area | Status | Priority | Action Required |
|---|---|---|---|
| Revenue Recognition | Moderate | Medium | Monitor consulting revenue concentration |
| Gross Margin | Critical | High | Immediate cost reduction and pricing review |
| Operating Expenses | High | High | Reduce payroll and overhead costs |
| Net Profitability | Critical | High | Urgent: achieve break-even within 2 months |
| Receivables Collection | High Risk | High | Escalate collections on 42% overdue |
| Payables Management | Moderate Risk | Medium | Negotiate terms, clear old balances |
| Working Capital | Weak | High | Improve cash conversion cycle |
| Client Concentration | Moderate Risk | Medium | Diversify client base |
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