Reading your P&L Answer 20 of 21

What do the coloured chips on my P&L mean?

They mark each margin against targets you set: green at or above your upper limit, red below your lower limit, and orange in between. Every column of the P&L gets its own chip, so a month that slipped stands out in a row of good ones, and the KPI strip under the P&L chart carries the same chip beside each margin.

The targets cover the four margins the statement judges, CM1 %, CM2 %, CM3 % and EBITDA %, with two limits each: Red below and Green from. Set them with the Set margin targets button at the top of the P&L; once set, it reads Margin targets. Under each pair the panel shows your store's last twelve full months as dots, so you can place the limits against what the store actually achieves rather than against a benchmark.

There are no default targets, because every business has its own healthy margins: a store without targets shows no chips at all. A margin is judged on the figure the P&L prints, to one decimal, so a cell reading 20,0% is never red against a 20% limit. A switch in the panel hides every chip and keeps your limits.

Targets belong to one store and change no figure on the statement. An owner or admin sets them, and an Analyst sees the chips and the limits. When several stores are added up in one view, the chips and the button are hidden, because no single store's limits can judge a total of several.

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More in Reading your P&L

All 21 questions
  1. 17 One day shows a negative margin. Is that a bug?
  2. 18 Why is every percentage against net revenue?
  3. 19 How should I read the margin waterfall?
  4. 20 What do the coloured chips on my P&L mean? You are reading this
  5. 21 Can I see several stores added up?

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