The Ledger

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Tag Archives: Profitability

Harvard Business Review: When to Change Your Company’s P&L Responsibilities

“Changing an organization’s primary dimension, i.e., making a different choice of which verticals have full P&L responsibility, is not something to get into lightly. But don’t do it belatedly either, when your degrees of freedom and the time to handle it carefully are severely limited.”

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McKinsey & Company: Solving the Paradox of Growth and Profitability in E-Commerce

“Retailers that overemphasize e-commerce revenues could actually be damaging their prospects. Indeed, digital growth is not enough; only profitable digital growth will create value.”

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Forbes: Hatching Innovation In Sustainability And Tech: A Q&A With Rembrandt’s CFO

“Information technology and finance/accounting are very complementary. One often hears that a finance/accounting department is only as good as the data provided. The same is true for good IT departments. IT provides systems and tools for both data collection and data consumption. Accounting is the number one consumer of IT data. It is very important for the IT team to provide means to collect and maintain data used to inform the business profitability.”

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CFO Journal: How CMOs and CFOs Can Collaborate on Pricing

“Companies should build a capability around pricing and revenue management, just as they have built capabilities around R&D, finance, marketing, and operations. Pricing is critical—it touches everything in the organization. Companies should have a coordinating function that forces a dialog between CMOs and CFOs, and they should have the data, insights, and tools to support it.”

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FP&A Trends: How to Manage Profitability in Uncertain Times

“Profitability is more than revenue minus cost…For example, along with revenue, costs/expenses, it also is important to know the life cycle of the product, or the entire product portfolio and its business drivers. Macro concepts like the business sector and economy also play part in arriving at profitability holistically.”

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CFO Journal: Talent, Performance, Growth: CFOs’ Top Priorities for 2022

“To improve financial performance and boost their companies’ bottom lines, CFOs indicate that they plan to use a range of levers, such as increasing margins, sharpening EBITDA, increasing efficiencies, managing profitability, and hitting transformational milestones. Pricing is another lever they intend to utilize, including to navigate inflation. In fact, more than three-fourths (76%) of CFOs note their organizations will raise prices for a substantial portion of their products and services to offset inflation.”

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CFO Magazine: Inflation Pressures Forcing CFOs to Take Action

“Purcell said the tight labor market is increasing Hostess’ labor costs. “When you’re in a tight labor market, you pay overtime, you do things like that, and it’s a dynamic environment. I think the team has done a very good job operating through that environment, but it is something that we’re keeping a sharp eye on,” Purcell said.

So far, Hostess has held the line on profitability. “We feel great about holding margins for the year in a pretty volatile inflationary environment,” Purcell said.”

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SF Magazine: Managing International Operations in Uncertain Times

“It’s also evident that foreign currency exchange rates, interest rates, and inflation inherently carry an element of uncertainty and volatility, which represents risks that financial professionals must manage in order to better forecast, monitor, and control the performance of their organization’s international business operations.”

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Automation World: Practical Advice to Increase Manufacturing Profitability

“With small and mid-size manufacturers, there is a tremendous need for accountants to move beyond financial reporting and budgeting for control to help every area of the business understand and improve the monetary impact of operations on profitability—whether it is in manufacturing, warehousing, marketing/sales, or personnel. The function most often missing from the accounting repertoire is creating information for internal decision support. Why? First, because it is barely taught in accounting curricula; and second, because most accountants start out in auditing and auditors don’t care about internal decision support, only external financial reporting.”

Read More at Automation World >