Data Interpretation and Analysis

Data Interpretation and Analysis

Data analysis helps business leaders and potential investors to gauge the profitability of the enterprise by looking at the analyzed data that is presented in a form that is easy to understand either as tables, charts, or graphs. Further data analysis helps stakeholders to compare the company’s performance with the previous periods, competitors, and the overall industry (Burnard, Gill, Stewart, Treasure, & Chadwick, 2008). Therefore, the business managers using the analyzed data formulate strategies and policies that make them remain afloat. The analysis of the data as represented in the chart below shows compares the realized profit and the target set for the year.

The chart above shows the data visualization derived from developing chart that integrate the cost of sales, the realized or target profit and the total revenue for the year. The blue color in each bar shows the profit, the orange color is for cost of goods sold and the dark color indicates the total sales volume or revenue. Category 1 visual shows what was realized by the company while category two shows the target. In category one chart the business realized profit of 4.18% that is equivalent of $ 9830 of cost of sales of $ 235,170 with total revenue being $ 245,000.In category 2 the company target profit is $ 58,792.50 of cost of sales of $235,170 with total revenue being $ 293,962.50.Therefore if the business was to realize the target profit for the year it has to make sales of $ 293,962.50 but this was affected by the loss recorded between January to June. The visualization was used since it gives a quick read for people who may fail to have a financial background. The use of visuals changed my analysis since I had to customize it too, to meet the needs of the target audience as it matches their varied needs.


Burnard, P., Gill, P., Stewart, K., Treasure, E., & Chadwick, B. (2008). Analyzing and presenting qualitative data. British dental journal204(8), 429-432.

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