The Ledger

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Tag Archives: Profitability

CFO Magazine: 91% of CFOs Concerned with Hitting Sales Forecasts: Weekly Stat

“Using technology for accurate decision-making is paramount for any finance executive looking to overcome both the short- and long-term consequences of a recession. With nearly half (46%) of CFOs telling Coupa they lack visibility into company spending data, a proper tech stack’s value to any CFO is continuing to become a requirement for success.”

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CFO Dive: For CFOs Rethinking Growth, Profitability, Data is Key

“Upping investments in digital capabilities is one move CFOs could take that could potentially aid them in making the shift to a more balanced model. Many CFOs are already viewing digital investments as a key goal; an October study by the Everest Group found 70% of CFOs agreed implementing digital technologies that could improve efficiency, effectiveness and stakeholder experiences was now a top priority, for example.”

Read More at CFO Dive >

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.”

Read More at The Wall Street Journal >

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.”

Read More at The Wall Street Journal >

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.”

Read More at CFO Magazine >