Why use Tableau Finance Dashboard?
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Whatever the product or service a business provides, if the business's financials aren't in order, it will be difficult to expand. Tableau Financial Dashboard includes a collection of management tools that can help the company and its top officials keep track of the financial-related KPIs like gross profit margin, expense Ratio etc. There are many limitations in analyzing a company's financials and making it easier to manage the process. Finance Dashboards organize all the information into one spot. This article will highlight some of the most important Tableau advantages and describes how it can benefit the workflow of your business. If you want to go beyond this article & dive deeper into Tableau, you can definitely master from Tableau Certification.
As the company grows, the business's financials surpass the spreadsheets and become more challenging to control. The amount of data is increasing rapidly since the finance department is responsible for every business activity including travel costs, salary, investments, partnership, loans revenues, profits taxes, etc. With the aid of an extremely fast and flexible analytics engine, Tableau Finance Dashboard can make it much easier for businesses to upload every financial figure to the dashboard. Let Tableau perform its task to make it easier for you to manage all of the data.
Tableau's Finance Dashboard allows companies to quickly monitor and analyze expensive items and ensure they are in control. Additionally, thanks to its advanced Analytical modeling, businesses can make use of algorithmic forecasting to create better value for their businesses.
What is what the Metrics that are used in the Tableau Finance Dashboard are?
Tableau has a variety of robust functions which allow users to conduct an extensive study of financial information. Different metrics that must be considered when creating the Tableau Finance Dashboard are as the following:
1) Tableau Finance Dashboard Metric: Gross Profit Margin
This measure is used to determine the percentage of total sales revenue the business can keep when taking into account the direct costs involved in making the product. Direct costs comprise the cost of labor and material, but do not include costs such as renting and distribution. GPM is thought as a key indicator of the efficiency of production of any enterprise. It is calculated applying the following formula:
Gross Profit Margin = (Total Revenue - Cost of Goods Sold) * Total Sales Revenue
2) Tableau Finance Dashboard Metric: Operating Profit Margin
Operating Profit Margin is also referred as Earnings Before Interest and Tax (EBIT) can be described as the proportion of total income earned by a business. This doesn't include the income from investment made by the company or the impact of taxes.
The Operating Profit Margin could be used to determine the extent to which a model of business is, and also to determine the amount left over after all operational expenses are paid for. It is calculated applying the following formula:
Operating Profit Margin = Operating Profit / Sales Revenue
3) Tableau Finance Dashboard Metric: Operating Expense Ratio
Operating Expenses Ratio is utilized to determine the efficiency of operations in an organization by measuring Operating Costs i.e. the costs of operating core operations to total revenue.
This is a measure that investors extensively study to determine the extent to which the operating expenses of any company are in comparison to the income it earns. The lower a company's operational costs is, the more profitable that business is thought to be.
Operating Expenses Ratio is calculated by using the formula:
Operating Expenses Ratio = Operating Cost / Total Revenue
4) Tableau Finance Dashboard Metric: Net Profit Margin
The Net Profit Margin (NPM) is among the most closely monitored financial metrics. It's used to assess how well a company can convert revenue into profit. It is typically represented as a percentage of sales rather than an absolute figure and is frequently used to evaluate the performance of various companies against one another.
Net Profit Margin may be determined using the formula below:
Net Profit Margin = [(Total Revenue (Operating Costs - Depreciation - Operating Costs) - Interests & Taxes) (Total Revenue) * 100
5) Tableau Finance Dashboard Metric: Working Capital
Working Capital is the Working Capital can be defined as the sum of money remaining after actual liabilities of a company is subtracted from the assets of the business. The assets of a company comprise of its cash, accounts Receivable Inventory, Prepaid Expenses, Inventory and so on. and the the liabilities of a business are the entirety of its debts or obligations due in 12 months like Accounts Payable, Accrued Costs as well as Bank Operating Credit Taxes payable, etc.
This metric is utilized to determine an enterprise's operational Efficiency and short-term financial health. It is calculated applying the following formula:
Working Capital = current assets + Current Liabilities
6) Tableau Finance Dashboard Metric: Current Ratio
The metric is also utilized to assess the operational Efficiency and the short-term financial health of businesses. It is a measure of the capacity of a company to fulfill it's obligations over the short-term. The Current Ratio is determined using the formula:
Current Ratio = Total Current Assets/ the Total Liabilities
It is vital for companies to make sure that the significance of this metric is greater than 1 at any given the time. If the number is less than 1, it indicates that the business won't be able to fulfill its obligations if were all due.
7) Tableau Finance Dashboard Metric: Berry Ratio
It is thought to be among the most crucial metrics in all Financial Analysis. This is because the Berry Ratio compares the Gross profit of a business to its Operating expenses. It is a way to determine if a company is earning a loss or profit at any given point in time.
If the value is higher than 1, it implies that the company is earning profits even after considering all variables expenses. However an amount below 1, could mean that the company loses money. In the ideal situation it is more sensible to keep track of the significance of this measure over time.
Berry Ratio: Berry Ratio is calculated by using these formulas:
Berry Ratio = Gross Profit/ Operating expenses
8) Tableau Finance Dashboard Metric: Cash Conversion Cycle
The Cash Conversion Cycle allows businesses to evaluate their management and operations effectiveness. It helps to determine the time it takes the company to transform its investment or other sources into cash flows from sales. It is calculated by with the formula below:
CASH CONVERSION CIRCLE = Days of Inventory Invoiced plus Days of Sales Outstanding Days Payable Outstanding
9) Tableau Finance Dashboard Metric: Accounts Payable Turnover Ratio
The Accounts Payable Turnover Ratio could be described as a short-term financial metric of liquidity. It is used to determine how fast a company is able to pay its suppliers, in addition to other expenses.
The Accounts Payable Turnover Ratio may be determined using the following formula:
The Accounts Payable Turnover Rate is equal to the total purchase from suppliers / Average accounts payable
10) Tableau Finance Dashboard Metric: Accounts Receivable Turnover Ratio
The ratio of Accounts Receivable Turnover is used to determine how fast the company collects its payment owed , and also shows the effectiveness in extending credit.
It can be calculated by using the formula below:
Turnover Ratio of Accounts Receivable = Net Credit Sales/ average accounts receivable