Cutting-Edge Profitability Analytics

Margineo quantifies and explains key profitability drivers across volume changes, price/cost structure changes, and multi-dimensional product/customer mix interactions using proprietary technology and machine learning techniques.

Engineered atop the existing PVM analytical framework (“price volume mix”) that PwC calls the “preferred method for analyzing profitability and diagnosing profit issues," Margineo's more sophisticated and tech-enabled profit attribution unveils the crucial insights that 70% of manufacturing and distribution executives miss. Most strikingly, it is the only algorithm to successfully decompose the “mix” category into subcomponents that reveal vital profit levers (product mix, business segment mix, factory mix, sales channel mix, region mix, customer demographic mix, etc.) without needing anything else but your existing financial data. Currently offered as a service, soon to be released as enterprise ready software.

To read more about the traditional forms of PVM analysis that preceded Margineo’s advanced computational techniques, you may wish to read FTI Consulting's article which goes over the very basics of the framework.

Leading global supply chain and manufacturing FP&A teams (Tesla, etc.) is our former area of expertise. Though Margineo’s algorithm is useful for most companies, we have found those that benefit the most usually have revenues above $1B and have significant product/customer/geographic mix complexity (which also particularly behooves targetting global manufacturers and distributors).

As an example, XYZ widget company might make several products, each sold in different regions and channels and manufactured in different locations. Here, Margineo’s algorithm would attribute changes to profitability across volume changes, price/cost structure changes, product mix, region mix, channel mix, and manufacturing location mix with ease (something no other model can quantify).

We only need one data request to successfully run a profit analysis. Our request is typically for an income statement broken down by all the mixes you wish to analyze, but if the data is not easily retrievable or exists in a different format, we have worked with customers in the past to facilitate the completion of these data requests (we reserve the right to bill for this type of service).

In accord with our data and privacy policies, your company data will never be shared, published, sold, or used in training models and will only be used to generate your report. All company data is deleted from all of our systems after delivery of your final report. We understand that your business data is extremely confidential and we implement best in class security measures to encrypt and safeguard your data at all times.

Typically, we are able to return a full report within 72 hours of data request completion. Complying with the data request usually takes about one hour of your company's time and the final report delivery meeting likewise also takes about an hour. This brings the total time of your involvement to 2 hours. We will soon release our algorithm as enterprise grade software so you can run analyses within seconds.

While we do not typically share our customer list, in cases where third-party referrals are required for project approval, we will do our best to connect you with existing customers provided they give us their written consent. You may also contact us to request a redacted report from a prior engagement.

We are so confident that you will benefit from Margineo's insight that we are offering a money-back guarantee. If you feel that our report or recommendations do not provide sufficient value, you are eligible for a full refund—provided the following conditions are met:

1. (1) You must have signed up for more than 1 analysis.
2. (2) You must request the refund within 15 days of receiving the final report.
3. (3) You agree to participate in a brief follow-up conversation (15–30 minutes) to help us understand your concerns. This helps us improve and ensures we’ve had a chance to clarify or correct any misunderstandings.
4. (4) After the meeting, we will issue a full refund promptly—no further questions asked.

Our promise is simple: the insights we provide should immediately payback. If not, we are happy to refund you!