Julia Shandra, Grenardi Group Estonia OÜ country manager

"Our store profitability calculations prepared by AG Capital give us strong arguments in negotiations for the lease terms with trade centers. In all discussions about rent reduction we were able to reach an agreement with favorable terms for us. "


This product can help:

"Our company owns several shops and we want to know whether all of them are profitable."

Calculating the Cost-effectiveness of Structural Units

Description of this Service

Customer description: Your company wishes to understand how your general results are divided into structural units / product groups / sources / employees and to adjust your strategies accordingly.


Customer requirements: We prefer to work with firms that have an ordered system of bookkeeping and computerized warehouse internal accounting system. If there is an electronic system in place but it is not working as well as you wish, we can, as part of our service, provide recommendations on methods for more efficient internal accounting organization.


Description of the service:

The overall results of the company are the total sum of individual structural units, product groups, customers and employees. This service will assist you in:

  • Determining the viability and profitability of structural units;
  • Measuring the correspondence of stock to turnover of each individual business unit;
  • Assessing whether the level of expenditure of each item of the specific business areas is adequate to its income;
  • Comparing the results of structural units between themselves;
  • Calculation of profitability of workers, groups of products and resources;

The Functionality of the Model:

  • Separation of revenue and direct production / sales costs by structural units, by month, by product groups;
  • Separation of indirect costs by structural units, by month, in accordance with the principles defined by you, (e.g., sharing the indirect costs referring them to the  turnover or gross profits of each structural unit);
  • Separation of monthly general results of your enterprise, (profit and loss statement), by structural units, determination of profit or loss for each structural unit;
  • Generalisation of the results for each structural unit within a year;
  • Possibility to create ratings of structural units according to different parameters (turnover, average discount, net or gross profit, etc.);
  • Calculation of breakeven turnover for each structural unit, considering its average price mark-up;
  • Determining efficiency of structural units, depending on the peculiarity of the company, by month (e.g. turnover per m2, the average inventory turnover, average profit per customer, etc.);
  • It is also possible to attribute to the structural units the so-called "economic" costs that are not reflected in accounting; for example, the alternative cost of money frozen in stocks or with debtors;
  • Automatic data input - data for this service will be automatically exported from the accounting records of the system into the profitability model.


Profitability model