Profitability Analysis
AI-Driven Margin & Contribution Analysis
Gross Profit
$362.4M+14.2%
Margin: 42.8%Target: 40%
Operating Profit
$155.0M+18.5%
Margin: 18.3%Target: 17%
Net Profit
$124.8M+15.2%
Margin: 14.7%Target: 13%
EBIT
$168.2M+12.8%
Margin: 19.9%Target: 18%
AI Customer Profitability Ranking
1Enterprise A
$12.4M
Trend: upExpand relationship
2Enterprise B
$10.8M
Trend: stableDeepen integration
3SMB Cluster
$8.2M
Trend: upUpsell opportunities
!Government
-$2.1M
Trend: downReview contract terms
Product Margin Analysis
Cloud Suite52.4% ++2.1
Contribution: 38%
Hardware28.5% -1.2
Contribution: 25%
Services35.2% ++0.8
Contribution: 22%
Licensing78.4% ++1.5
Contribution: 15%
Marginal Analysis
Legacy ERP
Contribution: 12.5%
Phase out
Cloud ERP
Contribution: 45.2%
Invest
Analytics Plus
Contribution: 62.8%
Scale
AI Recommendations
high+$18M
Increase Cloud Suite pricing by 5% - elasticity analysis shows minimal impact
medium+$4.2M
Restructure Hardware supply chain to improve margin by 3pts
low+$2.1M
Government contract renegotiation needed - currently unprofitable
Cloud Suite Growth
Cloud products showing highest margin improvement at +2.1pts. Recommend prioritizing expansion.
Hardware Margin Risk
Hardware margin declining. Supply chain review recommended to prevent further erosion.
Pricing Opportunity
Elasticity analysis suggests 5% price increase with minimal volume impact. Potential +$18M.