Join Rudolph Rosenberg for an in-depth discussion in this video Identifying recurrent vs. one-off business, part of Financial Analysis: Analyzing the Top Line with Excel.
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…Another key element when analyzing revenue is to differentiate between recurrent and…one of exceptional business.…Of course, all that business is good to have, no question about that.…But when you start analyzing your revenue performance,…this can lead you to the wrong conclusions.…Let me explain this further.…Most businesses have a portion of their revenue that is by nature recurrent.…That's the day to day business activity of the company.…For a small shop, this could be thousands of sales worth a few dollars each,…or for a very large cooperation, this could be $50,000 deals invoiced every day.…
Every business also has a portion of its revenue made through large…opportunities that do not happen that often and are worth much more money.…Again, for small shop this could be a $1,000 sale ,and for…a larger corporation this could be a $1 million sale.…So why is it so important to differentiate between the two when analyzing revenue?…That's because of the difference in likelihood of them happening.…Small, recurrent sales are very likely.…
Also check out the companion course, Financial Analysis: Analyzing the Bottom Line with Excel.
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- Preparing your revenue information
- Comparing past performance
- Analyzing customer data
- Analyzing product information
- Identifying exceptional revenue