Organizations with a divisional business structure consist of multiple departments or business units. Examples of different business units are Sales, Marketing, Research & Development, and more.
In many cases, these units are structured as a business within a business because they operate with a high level of independence. As such, companies with separate business units are often found within parent companies that have subsidiaries and hospitality businesses.
Typically, companies with multiple business units plan and manage their own budgets. Consequently, managers are responsible for analyzing performance and preparing reports on their own unit’s financial situation.
The two most common indicators are EBIT (earnings before interest and taxes) or EBITDA (earnings before interest, taxes, depreciation, and amortization). More specifically, EBIT refers to the amount of income a company is generating, whereas EBITDA approximates a company’s cash flow.
Calculating EBITDA
To calculate EBIT/EBITDA, companies can opt to buy accountancy software or hire an accountant. However, these options are expensive, especially when compared to the alternatives.
In fact, no specialist software is needed because each business unit already measures its own costs, income, and expenses. Indeed, Sheetgo’s business unit and EBITDA template in Excel can analyze each business unit’s performance reliably.
Why use Microsoft Excel to analyze EBITDA and business unit performance?
- Flexibility: Microsoft Excel is the ideal tool for managing and analyzing financial data according to your company’s specific requirements. Additionally, it’s easy to modify and adapt spreadsheets, as it requires no prior coding experience.
- Accessibility: Unit managers and administrators can access and transfer their department’s data at any time and from any location. For instance, they can use their laptop, smartphone, or other devices.
- Compatibility: Microsoft Excel is compatible with other software that your company uses. As a result, data is easily imported into Excel spreadsheets.
- User-friendly: Many of your employees are probably familiar with spreadsheets. If they are not, it is easy to train them. Indeed, it’s ideal for beginners and advanced users to work with an Excel-based template.
How to get started
This spreadsheet template lets you analyze and compare budgets and performance across multiple business units.
It can be used by companies of all sizes, with any number of departments or divisions. It provides unit managers with a user-friendly way to collect and analyze income and expenses while generating automated reports. Additionally, it automatically generates dashboards for administrators and company directors.
What you get with this EBITDA template in Excel
When you download the Sheetgo Business unit performance template in Excel, you will get one spreadsheet that you can use to monitor the performance of your business unit, along with a Business unit performance analysis dashboard that displays key metrics such as gross margin, total variable costs, and EBITDA.
How to get the Business Unit Performance template in Excel
Click on the button below to receive Sheetgo’s Business Unit Performance and EBITDA Excel template via email.
How to use the template
Step 1: Select a time period for analysis
Next, go to the Inputs sheet and enter inputs in the boxes. Choose which year and month you want to analyze. Finally, select if you want an Accumulated or Month-only report.
Step 2: Enter account names
In the same spreadsheet, go to the Configuration tab. Now, enter the list of categories each business unit provides data on in Column A (Account name).
Please note that the template includes sample data to demonstrate its functionality. Delete this data or overwrite it with your own.
Start monitoring your business units
Step 3: Enter data
Enter your business units’ data in the Business registers sheet.
Looking for more finance Excel templates?
Check out this post on Sheetgo’s automated expense tracker template.
Start monitoring your business units
