What are intermediate management balances (IMB)?

Interim management balances (IMB ) are essential for assessing and developing a company's profitability. Whether your company is a SAS or a SARL, these balances are strategic.

A definition of intermediate management balances (IMB)

Intermediate management balances (IMB) are accounting and financial tools that are relevant to companies. They are presented in spreadsheet format.

Establishing MIS helps improve day-to-day financial management. They are an effective lever for identifying profitability issues.

Spreadsheets presenting intermediate management balances are relevant Key Performance Indicators (KPIs) for companies. Partners and investors need GIS to develop their operational strategies. MIS are essential elements for reading a company's net income and identifying potential profitability issues.

The different MIS of a company

Managing a company's key performance indicators requires a sharp accounting approach. Companies have eight or nine SIGs at their disposal, which SeDomicilier invites you to explore:

Each MIS can be expressed either as an amount or as a percentage of sales. You may be asking: How can I manage my accounting myself? Good management means understanding the benefits of MIS.

 

Why calculate a company's GIS?

The calculation of intermediate management balances enables us to analyze the profitability of a company's activity. It provides a relevant means of monitoring the viability of the company's activities over time.

GIS: eloquent key performance indicators

Through these accounting indicators, company managers are able to analyze the nature of their net income. A relevant study can identify the various elements linked to production processes.

MIS highlight exceptional events impacting a company's accounts, such as exceptional sales, restructuring costs, etc. The choice of MIS is closely linked to the company's financial policy and strategy.

Key indicators for developing corporate strategy

The indicators embodied in GIS provide a clear picture of the distribution of the wealth generated by the company's business activities. GIS offers opportunities for improvement at various strategic levels for the company:

  • production ;
  • SUPPLY ;
  • investments ;
  • financing, etc.

MIS are an excellent way of comparing a company's profitability with that of its competitors. They make it possible to measure the financial evolution of a business over a period of several years.

How to calculate intermediate management balances (IMB)?

GIS calculation varies according to the nature of the GIS. A predefined order must be respected, as some GIS depend on other GIS to be calculated. SeDomicilier invites you to discover how to calculate GIS in a precise order.

Once the GIS has been calculated, we need to be able to interpret it.

 

How to interpret intermediate management balances (IMB)?

SeDomicilier shows you how to interpret the various intermediate management balances to measure your company's performance.

Production for the year

Production for the year is relevant for companies involved in the production or processing of goods. The amount of this GIS is used to calculate the gross production margin to measure production activity for the given year.

If the amount of production in stock increases over time, it is necessary to question the strategy deployed. It may be necessary to change the inventory valuation method. Another solution is to increase your storage levels.

Sales margin

The sales margin is a relevant tool for steering sales prices. Tracking it provides a detailed analysis of your company's profits. It's a good idea to compare your company's sales margin with that of your competitors. In the event of a discrepancy, an in-depth analysis is called for.

The sales margin MIS requires an in-depth analysis of the evolution of merchandise purchase prices. Each product line must be calculated according to the sales margin to measure its profitability.

Value added (VA)

Value added (VA) must cover dividends and payroll costs to enable the company to finance itself. Reduced added value can jeopardize a company's financing capacity. It is important that it is high enough to remunerate employees and shareholders.

Gross operating surplus (EBITDA)

EBITDA provides the resources the company needs to :

  • pay your taxes ;
  • remunerating capital providers ;
  • to finance its activities.

Negative EBITDA means a persistent shortfall. Several causes can be identified:

  • the sales margin is too low;
  • the payroll is too high in relation to the business forecast;
  • sales of services or products do not cover fixed costs.

Operating income (RE)

Operating income (OI) is an indicator of a company's ability to generate resources through its activities. A positive result indicates an operating profit. Conversely, a negative OR indicates an operating loss.

Income before tax and exceptional items

Profit before tax and exceptionals measures a company's profitability based on its financial strategies. This indicator is based on the operating and financing cycle. It can be positive or negative:

  • Positive current income before tax = current profit.
  • Negative current income before tax = current loss.

Extraordinary income

Extraordinary income is unrelated to the company's ordinary operations. When this indicator is positive, it indicates an exceptional profit. On the other hand, a negative exceptional result is symptomatic of an exceptional loss.

A positive exceptional result can be explained by the sale of real estate or furniture. When this KPI is negative, it implies, for example, the payment of a fine.

Net income

Net income measures a company's overall performance. It provides information on the wealth generated by its activities.

  • A result in excess of 0 euros indicates a net profit.
  • A result of less than 0 euros indicates a deficit.

Interim management balances are key performance indicators for companies. Our intermediate management balances (IMB) tables give you a global view of these KPIS, the application and importance of which may vary according to the activity and structure of your company.