Find the winners and losers in profitability and growth
Analyzing profitability and growth is crucial to strategic planning and decision-making. We use a quadrant method in this example. By placing all product segments in dynamic quadrants, we can define winners, losers, and areas of opportunity. For the profitability quadrant, we put YTD net sales on the y-axis and YTD net profit margin on the x-axis. We then let the users define the boundaries of each quadrant by inputting their own bottom lines for net sales and net profit margin.