Join Rudolph Rosenberg for an in-depth discussion in this video Analyzing sales and marketing, part of Financial Analysis: Analyzing the Bottom Line with Excel.
…We'll start by analyzing sales and marketing expenditures.…Those are all the expenses made towards things that will generate revenue for…the company.…For example,…sales reps' salaries are a big chunk of what you can find in this category.…The second big element relates to marketing expenses.…Which means any marketing program or…advertising program that has been put into place.…So why do we want to have a separate category for sales and marketing?…The reason is that we can directly compare this element of…operating expenses with the revenue we are generating.…
We can do it in many mathematical forms.…But essentially, the question we're trying to answer is, how much am I…getting back for every dollar I am spending on sales and marketing?…We've seen previously that we can compare overall OPEX to revenue.…Here, we essentially do the same.…We're just being more specific.…When we hire a new sales person, or launch a new marketing program,…we have in mind that we want to generate more business.…So, it's logical for us to compare how much we're spending on sales and…
Also check out the companion course, Financial Analysis: Analyzing the Top Line with Excel.
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- Finding data points
- Prepping data
- Calculating standard cost and gross margins
- Analyzing overall gross margin performance
- Analyzing individual and overall expenses