BUSINESS-ACUMEN5 MIN READ
Read a Troubled P&L
Diagnose a P&L miss by tracing revenue, gross margin, operating expense, and mix before recommending action.
Profit miss Revenue is on plan, but operating income missed by $280,000. A broad cost freeze may miss the actual P&L driver. P&L diagnosis Revenue -> gross margin -> opex -> mix Read the statement in layers. The right action depends on which layer moved. Fix the cause, not the most visible expense. Net income is the result; the moved line is the clue. 01 Revenue 02 Margin 03 Mix Revenue read Gate 1 Revenue is on plan, but discounts increased late in the quarter. What should you check next?
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