Revenue Analysis - Part I

In Financial Data Analysis, Revenue Analysis speaks primarily to understanding which product(s) generate the most revenues and whether we can identify any aspect of seasonality towards these trends or not.

The importance of this is that we are able to clearly understand which product(s) generate the most revenues and least revenues and this forms the first part of our puzzle.

If a product generates a lot of revenues, but the expenses are greater than the revenues - this isn't a good news story.

However, if the product generates a lot of revenues, and the expenses are well below the revenues - we may have a product which is performing well.

Let's take a look at how Southern Water Corps Revenue Analysis looks like by calculating the Revenues for each of the products and asking ourselves - what does the data tell us?

Let's get started!

Q1. For each of the three Southern Water Corp. Desalination Plants, they produce desalinated water which is then consumed via private, public or residential usage.

Please calculate the monthly revenues for Kootha, Surjek and Jutik and put this in the table below. What trends are you able to pick up?

Please note you will have to reference the account type FINANCIAL ACTUAL in the Data Repository Tab to answer the questions in this Case Study for Revenue Analysis, Expenses Analysis and EBIT Analysis.

Unit Value Driver Profit Centre Profit Centre Element Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14

Total

Kootha Revenue 001 Private Water Hedge Sales W-Transact (0211) - Soft $0.00

Kootha Revenue 001 Private Water Hedge Sales W-Transact (0212) - Hard $0.00

Kootha Revenue 002 Public Sales W-Transact (0211) - Soft $0.00

Kootha Revenue 002 Public Sales W-Transact (0212) - Hard $0.00

Kootha Revenue 003 Residential Sales W-Transact (0211) - Soft $0.00

Surjek Revenue 001 Private Water Hedge Sales W-Transact (0211) - Soft $0.00

Surjek Revenue 001 Private Water Hedge Sales W-Transact (0212) - Hard $0.00

Surjek Revenue 002 Public Sales W-Transact (0211) - Soft $0.00

Surjek Revenue 002 Public Sales W-Transact (0212) - Hard $0.00

Surjek Revenue 003 Residential Sales W-Transact (0211) - Soft $0.00

Jutik Revenue 001 Private Water Hedge Sales W-Transact (0211) - Soft $0.00

Jutik Revenue 001 Private Water Hedge Sales W-Transact (0212) - Hard $0.00

Jutik Revenue 002 Public Sales W-Transact (0211) - Soft $0.00

Jutik Revenue 002 Public Sales W-Transact (0212) - Hard $0.00

Jutik Revenue 003 Residential Sales W-Transact (0211) - Soft $0.00

You've now calculated the Revenues for each of the three desalination plants (Kootha, Surjek and Jutik). This has given you a micro-view of the trends, but let's take a look at the macro-revenue

trends and view all this information aggregated together. Is there any particular trend(s) that we can pick up with respect to which water product(s) have the highest revenue overall?

Q2) Aggregate the Profit Centre(s) for each Unit (i.e. 001 Private Water Hedge Sales, Public Sales, Residential Sales) in the table below and subsequently plot this out

What trends do you note when comparing Kootha, Surjek and Jutik? Is there any plant / product which generates the majority of the revenues?

Unit Value Driver Profit Centre Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14

Total

Kootha Revenue 001 Private Water Hedge Sales $0.00

Kootha Revenue 002 Public Sales $0.00

Kootha Revenue 003 Residential Sales $0.00

Surjek Revenue 001 Private Water Hedge Sales $0.00

Surjek Revenue 002 Public Sales $0.00

Surjek Revenue 003 Residential Sales $0.00

Jutik Revenue 001 Private Water Hedge Sales $0.00

Jutik Revenue 002 Public Sales $0.00

Jutik Revenue 003 Residential Sales $0.00

In the previous exercise we've picked up some trends from observing the monthly revenues trended over a twelve month period.

Specifically, it's clear that one of the Unit(s) generates the majority of the revenues for Southern Water Corp.

However, it's important for us to understand the contribution each customer segment provides from a % standpoint as well as a dollar stand point.

Let's close out the Revenue Analysis with the below question.

Q3. Calculate the overall % contribution of each customer segment for each of the three (3) units listed below and stacked column chart showing the contributions

that each customer segment provides per unit. (You can add a stacked column chart showing either % contribution or Overall $ Contribution as per the below example)

001 Private Water Hedge Sales 002 Public Sales 003 Residential Sales Total

Kootha $0.00

Surjek $0.00

Jutik $0.00

001 Private Water Hedge Sales 002 Public Sales 003 Residential Sales Total

Kootha 0%

Surjek 0%

Jutik 0%

QUESTION 6 The solubility of Ar (g) in water at 25"C is 1.6x10M when the pressure of the Ar above the solution is 1.0 atm. The solubility of Ar at a pressure of 2.5 atm in a. 1.6 x 103 b. 8.4 x 104 C 4.0 x 10-3 d. 7.5 x 10-2 e. 1.6 x 10-3 QUESTION 7 In a saturated solution of a salt in water, the rate of crystallization > the rate of dissolution the rate of dissolution > the rate of crystallization b seed crystal addition may cause massive crystallization C. addition of more water causes massive crystallization d the rate of crystallization = the rate of dissolutionQI use Case and DF D levelo, DFD levelf , and DFD level 2 For at least one process For NCT library System ? CS Scanned with CamScanner1: Question 5 (0.5 points) 2 3 Graphs showing the temperature change for the dissolution of two different ionic compounds in water are shown below. Match each graph with the statement that correctly describes the dissolution 5 process represented by the graph. The dissolution process releases heat to the surroundings. The dissolution process absorbs heat from the 2. N O surroundings. X W V N 4 AaWhich of the following examples accurately describes a difference in the types of business combinations? (Select the best answer.) a. A statutory merger can only be effected through an asset acquisition while a statutory consolidation can only be effected through a capital stock acquisition. b. A statutory merger can only be eected through a capital stock acquisition while a statutory consolidation can only be effected through an asset acquisition. c. A statutory merger requires the dissolution of the acquired company while a statutory consolidation requires dissolution of the companies involved in the combination following the transfer of assets or stock to a newly formed entity. d. A statutory consolidation requires dissolution of the acquired company while a statutory merger does not require dissolution. e. Both a statutory merger and a statutory consolidation can only be effected through an asset acquisition but only a statutory consolidation requires dissolution of the acquired company. D Question 2 2 pts Agency law imposes contract liability on principals and agents depending on how the agency is classified. Which of the choices below are not part of the agency classification? Marginally disclosed Partially disclosed Undisclosed Fully disclosed D Question 3 1 pts A principal is liable for the torts of its independent contracts. O True OFalse