For everyone who wants the template.... head to corporatefinancecademy.com and scroll about halfway down, you will see a box that says "Get our FREE templates!", enter your email address. After you confirm your sign-up, you will receive an email with a link to download!

@humphreymbwilo4435

Ай бұрын

Cant open that link

@Kons213

10 күн бұрын

Link doesn't exist anymore

Overall this is a great video tutorial to understand each component. The only thing that I want to call out is the formula written on MIX has an error. It was shown as "CY Units * (PY product price/unit - PY total price/unit) * (CY product % of total units - PT product % of total units)" In your excel example, your formula is actually doing this It was shown as "CY Units TOTAL * (PY product price/unit - PY total price/unit) * (CY product % of total units - PT product % of total units)"..................the CY Units should be written as CY Units TOTAL.

I was recently promoted to an FP&A role and had so much trouble understanding this topic. You are amazing. I’ll definitely subscribe to your month access!

THIS IS THE BEST VIDEO EVER FOUND!! Thanks man! I have been around 10 hours in 2 days trying to understand more how to tell a story behind the PVM model! and of course the Profit impact you show was the chery of the cake! Great job!

@CorporateFinanceAcademy

Жыл бұрын

this is our favorite comment we've ever found! Glad you liked it! Be sure to check out our site and share with your friends!

Thanks so much for doing this. I have been struggling for a couple of days with other web content explained really badly by people, and really fast. Your content was perfectly balanced and thanks for the Excel explanation where you have shown your formulas. It gives me a fighting chance to set up my own PVM analysis. Also looping in profit was great. Love your work, cheers.

@CorporateFinanceAcademy

2 жыл бұрын

Great to hear this was helpful! Be sure to check out our other videos and recommend to others people who might be able to use it!!

@humphreymbwilo4435

Ай бұрын

@@CorporateFinanceAcademy looking for that excel sheet however that link is not working

Thanks a lot for the explanation! Will need to go through the formulas one at a time to really understand the logic behind all the calculations

@CorporateFinanceAcademy

3 жыл бұрын

Glad it was helpful!

Hi, Thanks for this video. It is very helpful

Really great understanding of variance analysis ...

@CorporateFinanceAcademy

3 жыл бұрын

Thanks, Ravi!

YOU ARE THE G.O.A.T!! This was extremely helpful

Great work!

@CorporateFinanceAcademy

3 жыл бұрын

Thank you!!

Thanks for the video. I am very comfortable with the MIX calculations and explaining the dilutive impacts of lower priced brands etc. What I am struggling with is how to better explain the remaining volume variance by brand. I am often left numbers that don't make much sense. I am comfortable they are right, but need help explaining to users what they (the volume variance minus mix) mean.

Extremely well explained and usefull

@CorporateFinanceAcademy

3 жыл бұрын

Great to hear! Thanks for watching!

Super useful- thank you!!!

@CorporateFinanceAcademy

2 жыл бұрын

Glad it was helpful!

thank you very much!

Awesome ! Thanks for the great work

@CorporateFinanceAcademy

9 ай бұрын

Thank you - what other videos would like to see?

Thank you this was very helpful!

@CorporateFinanceAcademy

2 жыл бұрын

Great to hear! Be sure to head to our website www.corporatefinanceacademy.com and sign-up for our mailing list!

Great video, thank you. Questions, what if it has new product or discontinued product? There will be no price impact but how to separate vol and mix?

Great content!

@CorporateFinanceAcademy

11 ай бұрын

Thank you so much! What other content would you like to see?

Thank you so much for such explanation! Please, could you answer - when we calculate price per unit, do we need to use net sales, not gross sales? as I have promo and special trading terms (and, in my situation this is Gross Sales minus Promo minus trading terms = Net Sales). thank you so much in advance! your answer is valuable for me.

Great vid!

@CorporateFinanceAcademy

9 ай бұрын

Thank you for watching - be sure to subscribe!

Superb video

@CorporateFinanceAcademy

4 ай бұрын

Thank you!

Great video and explanation. While doing this, i ran into an issues. When using a hierarchy of products (ie: electronics>AV equipment>itemXYZ), the item level price/volume/mix does not sum up to the total of AV equipment, and likewise that does not sum up to "electonics". Am i doing something incorrectly or is that how the formula is built?

Hi... your website does not exist. Any other way to get the template ? do you have a new website ?

@emare4117

10 ай бұрын

Same. I wasn't able to access the website. It just gives a "404" error.

@CorporateFinanceAcademy

7 ай бұрын

Must have caught it at a downtime or something, it’s been up and running!

@tego73

3 ай бұрын

Don't click the link in the description above, I got to the site by simply googling Corporate Finance Academy.

How do you calculate the volume and mix impacts with the following scenarios: (1) There is no sales (thus to avg price) in the prior year for a particular item, but sales in the current year; and (2) there is no sales of a particular item in the current year, but sales in the prior year?

Great video and thank you so much ! Please allow me to ask you the same question written in below. Why does the check (column AJ) for product B on the profit side not balanced out ? I would like to implement this excel logic into our company shortly and would like to confirm if the excel formula is 100 % correct or not. If there is some formula needs to be fixed, please let me know. Thank you in advance

@CorporateFinanceAcademy

3 жыл бұрын

Hey! This is a great catch! The cost as part of the walk is in the wrong color. The cost is UP!!! 0.5 year over year so the cost in the profit walk should be a pressure. If you flip the cost from a positive walking item to a negative item, the line item walk and the check are both 60. Great catch!

Thanks for the video. How would you calculate channel (online vs In-store) mix? Assuming same products are sold in both channels?

@CorporateFinanceAcademy

3 жыл бұрын

depends on what you are trying to get to, but if you were using this template you could effectively create multiple products. Product 1 - online, Product 1- in-store, Product 2 - online, Product 2 - in-store, Product 3.... etc... make sense? that's just one way, but it depends on what you are trying to do.

Great video, thank you so much for sharing. I'm not sure if I am too late in the game. Would you share the excel spreadsheet? I couldn't find it. Thank you!

@CorporateFinanceAcademy

Жыл бұрын

you can subscribe on our homepage. about halfway down there is a box that says subscribe here for the template.

Thanks a lot for the great video and for the template. Is it possible to have a file of formulas, key points you used through the slides in this video? Really appreciate that.

@CorporateFinanceAcademy

2 жыл бұрын

if you go to the website and sign-up in the box where it says something like "get the free template" once you sign-up you will get an email giving you a link... that link will let you download it!

Do you have examples how you do this if for example you just have sales and gross profit (just be able to do mix and margin I think)? Also do you have example of how you would bridge % margin over time if you have again just sales and gross profit by sku?

Hey, Saw the mix formula multiple times, especially between 8:45 and 9:00. One question though, on the logic of the part of formula. It is given below. I still couldn't fully understand why we do that? (PY Product Price/Unit) - (PY Total Price/Unit) Why do we do this? What is we just straight away took "PY Total Price/Unit" instead? I mean anyway, we will be adjusting the mix from Volume. So, while validating the final value; it will come the same, right? Total Value CY - Total Value PY = Price Effect + Mix Effect + Vol. Effect. Apologies for the trouble and taking away your time..

weirdly there ain't much quality explanations for PVM analysis on internet. This one is pretty greats.

@CorporateFinanceAcademy

10 ай бұрын

Thank you!!! Make sure you check out our other videos and subscribe!

Hi Great Video over PVM analysis just have one question why we need to substract the mix effect while calculating the volume impact. If we are studying a single product but it has different sub products then calculation is done over the single product the how the mix is affecting the volume.

@CorporateFinanceAcademy

2 жыл бұрын

Volume is co-mingled with mix... so you calc mix separately and pull it out of volume

In the Mix fomular, CY Units here is the Total CY Units of all products or just CY Unit of only that product? Could you pls confirm it for me

Hi, how do we treat the products that were sold in current year but were not sold in the previous year ? they are usually not comparable. do we add another column to calculate the non-comparable sales and profit change?

@ltc1122

Жыл бұрын

I would treat it as 100% volume impact. If it's a new product you can cave it out.

Do you have any advice on how to handle PVM mix on incredibly complicated product portfolios? What if the portfolio contains products that have drastically different units of measure (e.g. m^2 vs gal, vs. linear-feet, vs. package). It seems that if sales $'s is the common denominator for all products that Volume and Mix can't really be split apart.

@CorporateFinanceAcademy

3 жыл бұрын

it really would be case by case depending on what you are looking at. I'd need a little more detail to help you!

Hi, great tutorial. Really helpful! I just have a question regarding the mix analysis. Why exactly is it that we use the previous year's product and total prices to calculate the magnitude of the mix effect? (I mean why we use 25-14.3 for product A and not 27-12) Doesn't that mix the year over year change in price with the mix impact?

@CorporateFinanceAcademy

2 жыл бұрын

Good question! If you used the current year price you would be convoluting the price and mix impacts. By calculating the change in mix then using last year's price you are keeping the mix impact isolated.

@banamaskoun7634

2 жыл бұрын

​@@CorporateFinanceAcademy Thank you! But then wouldn't multiplying by current year units for the mix be also convoluting the volume and mix impacts?

@CorporateFinanceAcademy

2 жыл бұрын

@@banamaskoun7634 it isolates price from mix (you only use units which is unaffected by price). If you then jump forward to the volume calculation you can see we calculate volume change and then subtract out the mix impact! Makes sense?

Hi Sir, Thanks for the explanation. It was very helpful, Can you please attach the excel with workings

Hi, this was really applicable to what I am trying to do. Could I please get access to the excel template? Thank you!

@CorporateFinanceAcademy

2 жыл бұрын

yes - go to our website at corporatefinanceacademy.com and you will see on the homepage a place to enter your e-mail. When you do that you will automatically receive an email with a link to download the template!

Incredibly helpful video! But you left something out of the Mix equation. Where you have CY units at the beginning it should be Total CY Units.

Hi! Great tutorial. I have one question regarding the price variation calculation. Why does it use the current year volume and not the previous year?. My understating is that by doing so, there is a portion that is mixed with volume variation. Thanks!

@CorporateFinanceAcademy

3 жыл бұрын

Yes - you have to be very careful to not "double count" the impacts

@vovagitelman2335

2 жыл бұрын

Hi, could you please elaborate why does previous year volume includes a portion of mix impact?

Just a question, if you take a look @ profit bridge of product B seems that the final results is 75 instead of 60, differently of the product A, that tie. Coud you please confirm it

@CorporateFinanceAcademy

3 жыл бұрын

scroll down on the comments and you will see your answer! Cost is in the wrong color, once fixed it ties!

Hello can I get the excel template? I subscribed but can’t see the box where to get it thanks

Is there a way to include currency (FX) effects as well in this analysis? Thanks for the great video!

@Burdisso1982

Жыл бұрын

Indeed I was thinking about the same thing, also in case of discount!

@CorporateFinanceAcademy

11 ай бұрын

yes - you can definitely add F/X into the mix here! That would be PMV 2.0!

THanks for Video, have a doubt that COGS difference PY:95, CY:110 Difference is 15, but when we check the Cost Impact we have 7.5 ( and is not aligning with 15) , is there anything am i missing to understand, please clarify sir.

Great presentation - can you please send the excel file? Thank you

Quick question : I dont get why for the price effect you take the current year units sold instead of the previous years. It seems counterintuitive because if you take the current year units you are taking into account the volume effect (ie. change in units sold from previous year) ? Intuitively I would take the previous year units sold and mutiply it by the change in Price per unit to isolate the price effect. I am missing something ? Thanks

@CorporateFinanceAcademy

Жыл бұрын

you calculate how much the increase in price is on a per unit basis. Think about a super simple example with no mix. in year 1 you sell 10 units at $5 each, in year 2 you sell 12 units at $6 each. To get volume you would do 12 - 10 = 2 incremental units sold at last years price (2 * $5 = $10). To get Price you would find the per unit price difference ($6-$5 = $1) times current year volume ... $1 * 12 units = $12. ..... So the volume impact is $10 and the price impact is $12, for a total variance of $22. (last year sales of 10 units at $5/unit = $50 ... this year sales of 12 units at $6/unit = $72.... $72 - $50 = $22). Make sense? The PURE volume is the fact that you went up 2 units at last years price. The PURE price impact is $1 for every unit you sold this year.

Thanks for the great video. Is there a slight error on the cost calculation in that it should be negative? I noticed the cost bridge doesn't walk, shouldn't the impact of increasing cost be a negative?

@CorporateFinanceAcademy

9 ай бұрын

Yes! If you read through the comments you will see, unfortunately, I can’t go in and edit the video!!

@rocinante666

4 ай бұрын

I was thinking the same, and wanted to ask the same question. In my opinion the cost impact on profit should be calculated instead by (LY cost/unit - CY cost/unit) * CY Qty. Like that, if the cost increases from last year to current year, the impact on profit will be negative. This should make sense in my opinion.

Hi Sir, I subscribed today. I need to PVM for Current YTD Plan vs Current YTD Actual. Is it as simple as replacing the PY info with Current Year Plan info ? Will Volume comingle with mix, if I replace PY with Plan info?

@CorporateFinanceAcademy

2 жыл бұрын

You can do the exact same math but with your two comparisons as Budget and Actual - it's very common to do that comparison!

I found some materials said that Variance Analysis means analyzing the actual vs the bugeted. Can you explain please

@CorporateFinanceAcademy

2 жыл бұрын

Variance analysis could be this year vs. last year, budget vs. actual, or another difference. It really just means analyzing one set of numbers vs. another. Make sense?

Thank you for the video! Please could you explain why for volume contribution, you multiply the change by unit price [PY] but for price contribution you multiply the change by sales volume [CY]? I don't understand the logic for one being [CY] and the other [PY]. Many thanks.

@CorporateFinanceAcademy

11 ай бұрын

Unfortunately, I don't have time to answer every question on here, but very much appreciate you watching the video. Often, I have already answered questions in the comments so check out there. If you become a paying member on our site, I am available for custom questions!

Hi, great tutorial but why does the check (column AJ) for Product B on the Profit side not balance out (60 vs 75)? Thx

@CorporateFinanceAcademy

3 жыл бұрын

Hey! This is a great catch! The cost as part of the walk is in the wrong color. The cost is UP!!! 0.5 year over year so the cost in the profit walk should be a pressure. If you flip the cost from a positive walking item to a negative item, the line item walk and the check are both 60. Great catch!

I tried to download the Excel templates but was unsuccessful. Can you provide the link to download the templates?

Where the numbers in AJ are different from the numbers in AH for profit?

Thanks a lot Sir !! But I signed up for the mailing list on the website and I haven't received it yet. Please I really need it.

@CorporateFinanceAcademy

2 жыл бұрын

The email you received when you signed up has a link in it. Simply click that link and it will download!

I like to walk the Gm% in addition to value. Why does the volume change drive a change in the gm% at a total product level?

@CorporateFinanceAcademy

Жыл бұрын

I agree - A GM% walk is a great way to walk it!

HI, will you provide a link to the excel spreadsheet?

@CorporateFinanceAcademy

2 жыл бұрын

if you go to the website and sign-up in the box where it says something like "get the free template" once you sign-up you will get an email giving you a link... that link will let you download it!

Subscribed as well, can you share the template?

When calculating the mix impact on profit why did you multiply by profit margins of prior year instead of current year?

Hi, I used your formula on my data and I'm missing something on MIX. All of a sudden V6 and W6 are calculated and I think you're using an average of V4 & 5, as well as W4 &5. My calculations are coming out funky because you didn't show exactly how to calculate the 14.3 and 12.0 (it's not an average). Can you please explain? Thank you!!!

@danielleswartz6517

3 жыл бұрын

I just subscribed to your mailing list, maybe if you send the template I can see the formula?

@CorporateFinanceAcademy

3 жыл бұрын

Yes - will send!

@tanwun473

Жыл бұрын

What was the verdict

Hello - what do i do if we didnt budget for the item last year, simply using the formulas it was imply 100% variance in price...

@CorporateFinanceAcademy

2 жыл бұрын

you could exclude that item and do the other items ... chalk that one up as "F" (favorable) and move on

Hey Corporate Finance Team, thanks for great explanation. I have subscribed to the website, could you please send me the excel. Sincere thanks again!

@CorporateFinanceAcademy

3 жыл бұрын

You should have it now!

Are you still sending out the file? Im trying to figure out whats on V6 and if or how it would apply to me.

@CorporateFinanceAcademy

Жыл бұрын

Yes - you can sign up for a free copy on our home page!

Hello, Nice explanation.! I have subscribed to the mailing list, May i have the excel template.

@CorporateFinanceAcademy

3 жыл бұрын

Thanks! You should receive an email with a link to download!

@vickyj8535

3 жыл бұрын

Hi, didn't receive the link yet. Can you please resend it. Thanks again

For the price effect, why using the current units if we want to isolate the effect of price only?

I do not understand 8:40 how you were able to find the total. What exactly does blended mean?

is it possible to get the excel file? i already subscribed on the website.

@CorporateFinanceAcademy

3 жыл бұрын

Will send in a few days!

I just subscribed to your mailing list - would it be possible to send the template?

@CorporateFinanceAcademy

3 жыл бұрын

Yes - I will shortly, sorry for the delay!

Requesting excel file. Will follow for next vids ty

@CorporateFinanceAcademy

Жыл бұрын

if you go to our website there is a box that says for the free template sign-up for our newsletter - if you do that you will get the file!

great info. can i get the template?

@CorporateFinanceAcademy

3 жыл бұрын

if you sign up for mailing list I will send!

Is it possible to calculate the PVM on GM%? I often get this question, how much GM% is moved because of the price%, COGS% and Mix%

@CorporateFinanceAcademy

2 жыл бұрын

yes - you can do that! it is helpful way to look at it!

@terpoftroy

2 жыл бұрын

@@CorporateFinanceAcademy Could you explain how to set up PVM for GM% in Excel? Would be a valuable tool. Appreciate your work!

@Lipper29

2 жыл бұрын

@@terpoftroy I am also trying to figure out the GM% piece of this. Did you ever get an answer?

@terpoftroy

2 жыл бұрын

@@Lipper29 unfortunately no

Thank you for a great video! Is there a reason why the walk for profit for Product B does not tie? 45-6+28+8 = 75 as opposed to 60? Thanks!

@CorporateFinanceAcademy

11 ай бұрын

I think I answered this in the comments already, but sure to take a look! (I believe it was an error on the spreadsheet which is fixed if you download it)

I'm stuck.. At 8:08 how do you calculate Total price/unit? Average between 25 and 10 is 17, not 14,3.

@CorporateFinanceAcademy

11 ай бұрын

Sorry. I really appreciate you watching the video. Please take a look in the comments as I may have already answered this. You can also download the file from the site to see the details!

please share the excel template.

could you share the excell template please ?

@CorporateFinanceAcademy

2 жыл бұрын

yes - go to our website at corporatefinanceacademy.com and you will see on the homepage a place to enter your e-mail. When you do that you will automatically receive an email with a link to download the template!

May i have a excel file?

I love your video but me as non finance background your video and way seems a bit skipped for me. The part at a check i want to know and then Cost Impact on sale is zero too. Could please give me a reply on this part. Thank you in advance.

@syangtanjpofficial5019

2 жыл бұрын

Please Send me a Copy of Template. I just Subscribed website. Thank you.

@CorporateFinanceAcademy

2 жыл бұрын

hello - cost doesn't impact sales. If you had sales of 100 and cost of 50, you would have margin of 50. If cost changes to 48, that has no impact on sales, but it would change your margin to 52. Make sense?

I'm confused about how you got the 14.3 and 12. Nvm. I see that they are average prices. Both are the asp average sale price.

Why Total Change in Price is 2 (SUM of product's Change in Price) and not 2.3: '19 Price / Unit - '18 Price / Unit = 12 - 14.3 = -2.3 ?

May I have excel file?

@CorporateFinanceAcademy

3 жыл бұрын

sending now!

Hello, Can I get an excel template?

@CorporateFinanceAcademy

3 жыл бұрын

Hi! Yes - can you just put your email on our list at our site landing page: www.corporatefinanceacademy.com/

@tatianamelnikova9780

3 жыл бұрын

@@CorporateFinanceAcademy I've added my email on mentioned landing page: melnikova.t@... Please check

@marsclone

3 жыл бұрын

@@CorporateFinanceAcademy Is it possible that i can also receive the template. I already registered this week. Thank you in advance. M. van Weelden

thank you so much! Can i get the excel file please? I just signed up with my email.

@CorporateFinanceAcademy

2 жыл бұрын

if you sign-up on the homepage where it says get the free excel template it will email you a link to download!

@juliekrief6716

2 жыл бұрын

Hello I’ve subscribed and haven’t received it yet, can you please send it? Thanks

Can I have your Excel template please?

@CorporateFinanceAcademy

2 жыл бұрын

If you go to our homepage and sign-up where it offers the template you will receive an e-mail with a link to download the file.

Kindly send me also a copy of the excel, please.

You excel summaries keep changing. show math in mix calculation would help.

Please, send me excel template too. Thanks a lot!

@CorporateFinanceAcademy

3 жыл бұрын

If you signed up for mailing list on the website you should have it now!

Where can I find a deeper understanding of the formulas rather than just taking what the video says and implement bluntly? I really want to understand the logic behind formulas.

For everyone who asked for the template - I just sent a link to download via mailchimp for everyone who signed up on our mailing list!

@abhinavbisen5

3 жыл бұрын

Hi could you please let me download the excel template. I have also registered on the website. Thanks !

@igabor7738

3 жыл бұрын

Hi. I have just signed up for the mailing list. Could yoe pleas send me the link to the template? thanks!

@angeloszachos2114

3 жыл бұрын

Hi! I have subscribed to the list but after this comment and the first batch of templates that I understand you shared with other subscribers. Could you please share the template with me as well?

@CorporateFinanceAcademy

3 жыл бұрын

@@angeloszachos2114 sure! will do another batch shortly!

@angeloszachos2114

3 жыл бұрын

@@CorporateFinanceAcademy Many thanks!

Hi!! kzread.info/dash/bejne/lKOByqaegaq9pNY.html About this great video. Congrats to the job. In the end of the class, he told about get access to the excel file template. Is this possible?

@CorporateFinanceAcademy

Жыл бұрын

Thanks! You can subscribe on our home page. There is a box about halfway down which says for the free template, sign up here.