Accumulated result
What is it?
The key figure shows the overall financial performance, result or outcome over a specified period of time. This key figure provides an overview of how the outcome is accumulated or consumed over time and is useful for following the cumulative effect of the business's financial activities over time.
Cumulative means summing up or accumulating outcomes for different time periods (often months) over a certain period of time; in this case the current year. In other words, it is a cumulative or aggregated statement that shows the outcome so far.
Cumulative outcome is often used to get a more comprehensive picture of the performance development or the outcome over time. It helps analyze the cumulative effect of events and transactions and enables the identification of trends and patterns that can be useful for decision-making and planning.
How is it calculated?
Outcome summed up to specified time period
* Includes results for the current year.
Why is it important to follow?
Following the key figure is important for several reasons:
Long-term follow-up: It provides a continuous and long-term overview of how the organization's performance develops throughout the current year. It is particularly useful for monitoring performance over time.
Trend identification: By analyzing accumulated output, the organization can identify financial trends and patterns. It provides insight into whether the outcome over- or underperforms compared to previous years or budget expectations.
Performance appraisal: It enables evaluation of the organization's performance in relation to its goals and expectations for the year. It gives decision makers a clear picture of how well the organization is achieving its financial goals.
Correction and adaptation: If cumulative outcome indicates that the organization is not on track to achieve its goals, it provides the opportunity to take timely action to correct and adapt the business strategy.
Budget follow-up: It is used to compare actual results with budget expectations. It helps identify where expenses and income are in line with the plan and where there are deviations.
Continuous planning: Cumulative outcome provides a basis for continuous financial planning. The organization can use this information to plan and adjust its operations for the rest of the year.
In summary, the KPI provides a broad and long-term picture of the organization's financial performance and profit development. It helps the organization to be proactive in its decisions and adjustments to achieve its financial goals for the year.
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