Live eCommerce P&L Teardown with Valentin Kuznetcov
Manage episode 433095564 series 3574119
In this episode, Nathan and Valentin dive into a real P&L and discuss the importance of understanding accounting principles and how to read a P&L. They highlight the limitations of a basic P&L structure and the need for a more comprehensive breakdown of revenue and costs. They discuss the impact of discounts and refunds on the business's profitability and the importance of optimising contribution margin. They also touch on the significance of OPEX and the potential for reducing costs to increase profitability. Overall, they emphasise the need for a proper P&L structure to facilitate better decision-making and finance management.
Chapters
00:00 Introduction
02:25 Limitations of a Basic P&L Structure
04:17 Breakdown of Revenue Items
10:36 Variable Costs and Contribution Margin
18:12 Low Contribution Margin One
20:57 Impact of Discounts and Refunds on Profitability
23:25 Marketing Effectiveness Ratio
26:30 Importance of a Proper P&L Structure
26 tập