Segmented Profitability Analysis and Asset Allocation PPT


This PPT slide, part of the 51-slide Complete Guide to Business Strategy Design PowerPoint presentation, presents a detailed analysis of profitability segmented by different market segments, specifically focusing on returns generated by selected assets. It highlights the contribution of each segment, denoted by A, B, and C, in terms of both percentage returns and monetary contributions. Segment A shows a return on assets (ROA) of 13%, while segments B and C demonstrate higher returns of 20% and 35%, respectively. This indicates significant variability in performance across segments, which is crucial for strategic decision-making.

The right side of the slide outlines the monetary contributions of each segment, with segment A contributing $5 million, segment B $6 million, and segment C $7 million. The total earnings before interest and taxes (EBIT) is noted as $15 million, after accounting for unallocated costs of $3 million. This breakdown allows for a clearer understanding of how each segment contributes to overall profitability.

The bottom section details the selected assets allocated to each segment, showing that segment A has $40 million in assets, segment B $30 million, and segment C $20 million, with unallocated assets totaling $10 million. The total assets amount to $100 million. This data is essential for evaluating asset efficiency and determining where to focus resources for optimal returns.

Overall, the slide effectively communicates the importance of measuring profitability by segment, providing insights that can guide strategic resource allocation and performance improvement initiatives.



This slide is part of the Complete Guide to Business Strategy Design PowerPoint presentation.

Created by former MBB consultants, this toolkit provides a details process and powerful frameworks to guide through strategy development process.

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