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, et al, 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 table below shows that the company failed to meet its profit target of 25% of the cost of goods sold between January and May since it made losses.

Item of Interest January – May June – December End of the Year
Unit Price $ 0.25 $0.25
Material used $ 10,000 $ 10,000
Profit or Loss Loss Profit
Cost of Goods Sold $ 235,170
Total Revenue $245,000
Profit $9,830
% Profit 4.18 %

However, between June and December, the business surpassed the target of a 25% profit margin as it registered profits. When computed for the whole year, the company made a profit of 4.18% on the cost of sales. During the year, the total revenue was $245,000 with the cost of goods sold being $ 235,170 giving a profit of $ 9,830. The change of fortune between June and December can be attributed to reduced cost of labor and increase in sale volume from 90,000 units to 120,000 units which were sold at a unit price of $0.25 with the cost of material remaining constant at $ 10,000. Therefore, it is prudent to argue that if labor cost is managed and the market expanded with the price for the company products’ remaining constant, the company has the potential to surpass the profit target in the coming financial year. This can be attained by adopting the best technology in the production process to reduce the cost of manpower and wastes (Burnard, et al, 2008). The table 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 journal, 204(8), 429-432.

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