Executive Summary Analysis of Operations:
The Executive Summary Analysis of Operations is a one-page quick and meaningful analysis of operations that includes all the important key indicators of financial performance described above. The analysis data comes from the monthly Financial Statements and Time Analyses Reports produced by the firm’s general ledger and project cost accounting software. The current year’s actual values are compared to the Profit Plan and to actual values for the previous year along with the variance analysis. The Executive Summary along with Graphic Charts of current and prior year’s key indicators make the analysis more meaningful, especially when the manager can relate to past events and decisions that improved or hurt the financial picture of the firm.
The Executive Summary Analysis of Operations is produced by linking the values in Tab-16 of the spreadsheet file to the Word.docx file. All values in the Executive Summary.docx file are updated when the values in the spreadsheet are changed or updated. No manual editing of the Executive Summary.docx file is required. Certain words in the Executive Summary.docx file change depending on whether the value is positive or negative. Words such as: more, less, increase, decrease, favorable or unfavorable change depending on the formula value to be consistent with the variance analysis in the spreadsheet file. IMPORTANT TIP: Don’t open the MS-Word®.docx file and the MS-Excel® spreadsheet file at the same time. When the Executive Summary.docx file is opened, it automatically opens the spreadsheet file to update the linked values from Tab-16 of the spreadsheet file. If the spreadsheet file is already open when you attempt to open the Word.docx file, you will get a message saying that the file is already open and it won’t let you open the file. To avoid this complication, close the spreadsheet file before opening the Word.docx file.
The Executive Summary Analysis of Operations has three sections. All of the values in the Executive Summary Word.docx file come from Tab-16 Analysis in the spreadsheet file. The first section calculates the variances in utilization and full-time-equivalents from the Profit Plan for the current year-to-date and for the same period-to-date last year.
The second section is an analysis of variances from the profit plan and for the same period-to-date last year for the condensed Income Statement including key ratios and multipliers from the Profit Plan for the same period-to-date last year including:
- Total Revenue
- Net Revenue
- Revenue Factor
- Direct Labor
- Operating Profit
The third section includes comments about Cash and Accounts Receivable. The current year-to-date balances are compared to last year’s year-to-date balances and accounts over ninety days old are compared. Other extraordinary comments could be included in the Executive Summary, but would have to be manually updated or edited each period.
Click on this file to open live MS-Word.docx file Executive Summaryv2012