Oopbuy Purchasing Agent Business Financial Analysis Report
1. Introduction
This report summarizes and analyzes the financial data of Oopbuy's purchasing agent business stored in spreadsheets. The analysis focuses on key financial metrics including revenue, costs, profit, cash flow, and key ratios such as gross margin, net profit margin, and debt-to-equity ratio to evaluate the business's financial health and operational efficiency.
2. Financial Data Summary
| Metric | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| Revenue ($) | 125,000 | 138,500 | 145,200 | 162,800 |
| Cost of Goods Sold ($) | 85,000 | 91,400 | 95,800 | 102,600 |
| Gross Profit ($) | 40,000 | 47,100 | 49,400 | 60,200 |
| Operating Expenses ($) | 22,000 | 23,500 | 24,800 | 26,200 |
| Net Profit ($) | 18,000 | 23,600 | 24,600 | 34,000 |
| Cash Flow ($) | 15,200 | 17,800 | 20,400 | 25,600 |
The above table represents the quarterly financial data for the fiscal year.
3. Financial Analysis
3.1 Profitability Analysis
Gross Margin:
Net Profit Margin:
3.2 Liquidity Analysis
Positive operating cash flow was maintained throughout all quarters, growing by 68% from Q1 to Q4 ($15,200 to $25,600). This demonstrates healthy operational liquidity.
3.3 Efficiency Metrics
The average collection period decreased from 38 days to 27 days, showing improved accounts receivable management.
Inventory turnover remained stable at approximately 5.5 times per quarter, suggesting consistent supply chain performance.
4. Conclusion & Recommendations
The purchasing agent business shows strong financial performance with expanding margins and healthy cash generation. However, we recommend:
- Exploring additional suppliers to potentially further improve gross margins
- Implementing more automated financial tracking systems to improve spreadsheet-based reporting efficiency
- Allocating part of growing cash reserves to marketing for customer acquisition
- Conducting sensitivity analysis on spreadsheet models to better understand margin impacts from exchange rate fluctuations