Perform percentage and ratio analysis

Perform percentage and ratio analysis in Microsoft Excel — with the four heights of help laid out: do it now, make it easier for the next person to accept, work out the right move when you are stuck, and learn the pattern so it stops coming back.

4prompt heights
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The four heights

The same task, four distances: today's deadline, the next reviewer, the stuck moment, the pattern.

Execute — do the immediate task

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Run percentage and ratio analysis on the Q2 expense and revenue table so procurement and the CFO…
Run percentage and ratio analysis on the Q2 expense and revenue table so procurement and the CFO can see margin trends. Calculate gross margin percentage, operating margin percentage, cost per unit, and revenue per employee for each month. Put the percentage columns directly after the relevant dollar columns and highlight any margin below 10% in amber. Deliver by Thursday for the board packet.

Improve — make it easier to accept

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Before I circulate this analysis to procurement and the CFO, make the percentage and ratio results…
Before I circulate this analysis to procurement and the CFO, make the percentage and ratio results easy to scan. Put the most important ratio, gross margin %, at the far left, show the formula in a hover cell or comment, and add a short explanation of any outlier months. Flag ratios that change more than 5 percentage points from the prior month and show the underlying numerator and denominator next to the ratio so reviewers don’t have to hunt.

Decide — diagnose the stuck moment

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I calculated gross and operating margins and March came back negative; procurement will call…

I calculated a margin that suddenly turns negative for March

I calculated gross and operating margins and March came back negative; procurement will call tomorrow and I don’t know if it’s a data error or legitimate. I’m worried I’ve used wrong denominators or included unusual one-offs. What’s the fastest diagnostic sequence to confirm whether this is a formula mistake or real, and the best next message to send to procurement?

Become — change the pattern

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Each month I rebuild percentage and ratio sheets from raw system exports and then debate…

I keep re-deriving the same ratios every month from raw exports

Each month I rebuild percentage and ratio sheets from raw system exports and then debate definitions with Finance, losing time and credibility. What consistent definition set or workflow change should I lock down so ratios are stable, documented, and quick to reproduce?

Next to this one

Other spreadsheet work people do in Microsoft Excel.

Every task here came from the work, not from a feature list — which is why the prompts name what you want done and never the button that does it. The tool changes; the work does not.
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