P&L sheet Analysis Model
Comprehensive profit and loss analysis with actionable insights and expense optimization
What’s hard about this today?
Businesses often struggle to identify the root causes of losses and inefficiencies in their financial operations. Without detailed analysis, companies miss critical patterns in revenue streams, expense drivers, and profitability trends, leading to poor strategic decisions and unsustainable burn rates.
How RyzUp fixes this
Detailed Profit & Loss Analysis for Demo Company (Period: 1 March 2023 – 29 February 2024). This comprehensive analysis reveals income patterns, expense drivers, and strategic recommendations for achieving profitability.
Financial Performance Summary
Total Income (Feb 2024)
$41,256.67
Operating Expenses (Feb 2024)
$3,044,000
Net Loss (Feb 2024)
-$2,790,000
US Treasury Bill Gains
$212,542.89
Critical Findings
Core operations severely underperforming - Sales only visible in last 3 months
Heavy reliance on non-operating income (US Treasury Bills) masking operational losses
Consistent net losses every month ranging from -$1.98M to -$2.79M
Wages & Salaries are largest expense driver (up to $1.22M monthly)
Marketing & Advertising costs reach $441K monthly with unclear ROI
No profitability achieved despite significant investment income
Monthly Income Breakdown (Mar 2023 - Feb 2024)
Month | Sales | Interest Income | Other Revenue | Total Income | Growth |
|---|---|---|---|---|---|
| Mar 2023 | $0 | $0 | $414.06 | $414.06 | - |
| Apr 2023 | $0 | $0 | $414.06 | $414.06 | 0% |
| May 2023 | $0 | $3,162.03 | $414.06 | $3,576.09 | +764% |
| Sep 2023 | $0 | $5,405.35 | $0 | $5,405.35 | - |
| Dec 2023 | $13,195.80 | $8,520.45 | $5,520.42 | $27,236.67 | +404% |
| Jan 2024 | $13,195.80 | $15,280.22 | $5,520.42 | $34,996.44 | +28% |
| Feb 2024 | $13,195.80 | $22,540.45 | $5,520.42 | $41,256.67 | +18% |
Income Trend Analysis
Major Operating Expense Drivers
Expense Category | Mar 2023 | Feb 2024 | Change | % of Total |
|---|---|---|---|---|
| Wages & Salaries | $756,000 | $1,220,000 | +61.4% | 40.1% |
| Marketing & Advertising | $242,000 | $441,207 | +82.3% | 14.5% |
| Consulting & Professional | $362,000 | $408,000 | +12.7% | 13.4% |
| Subscriptions | $91,000 | $267,000 | +193.4% | 8.8% |
| Customer Incentives | $0 | $100,115 | New | 3.3% |
| Software Expenses | $45,000 | $79,000 | +75.6% | 2.6% |
Operating Expenses vs Income (Thousands)
Financial Health Assessment
Income Sources
Revenue composition analysis
Expense Structure
Cost breakdown
Net Position
Bottom line performance
Actionable Recommendations
🎯 URGENT: Reduce workforce costs by 30-40% through strategic rightsizing and outsourcing review
📊 Implement strict ROI tracking for marketing spend - current $441K monthly lacks measurable returns
💰 Accelerate core sales development - current $13K monthly is insufficient for $3M expense base
🔍 Audit all subscriptions and software licenses for redundancies and consolidation opportunities
✈️ Establish travel and consulting budget caps with quarterly reviews and approval processes
🛡️ Reduce dependency on Treasury Bill gains through diversified, sustainable revenue streams
📈 Set monthly expense reduction targets: achieve $2M operating expenses within 6 months
⚡ Focus on high-margin products/services to improve unit economics and contribution margins
Net Profit/Loss Trend
Month | Total Income | Operating Expenses | Other Income | Net Loss | Status |
|---|---|---|---|---|---|
| Mar 2023 | $414.06 | $1,980,000 | $0 | -$1,980,000 | Critical |
| Apr 2023 | $414.06 | $1,980,000 | $0 | -$1,980,000 | Critical |
| May 2023 | $3,576 | $2,100,000 | $15,420 | -$2,081,000 | Critical |
| Sep 2023 | $5,405 | $2,450,000 | $85,630 | -$2,359,000 | Critical |
| Dec 2023 | $27,237 | $2,850,000 | $156,780 | -$2,666,000 | Critical |
| Jan 2024 | $34,996 | $2,920,000 | $189,450 | -$2,695,000 | Critical |
| Feb 2024 | $41,257 | $3,044,000 | $212,543 | -$2,790,000 | Critical |
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