The CFO'S Perspective

Roger Johnson

Roger Johnson

Roger has more than 30 years of private and public company experience as CFO, VP of Finance, Controller, and Director of Finance and Administration. His industry background spans manufacturing, distribution, supply chain, and financial services industries. Roger has over 20 years of extensive international experience in Asia and Pacific Rim countries, and was an expert Foreign Lecturer in the Peoples Republic of China for the Central Institute on Finance. Roger received his accounting degree from the University of Illinois and an MBA from Pepperdine University. He was previously a CPA.

Recent Posts by Roger Johnson:

How to Identify and Avoid Obsolete Inventory

Whether you are in retail, the supply chain, or are a manufacturer you have inventory. Ensuring that your inventory is “fresh” is a key to achieving profitability. Obsolete inventory can adversely impact your bottom line.  Today we are discussing how to analyze the various inventory phases to eliminate or reduce your obsolete inventory.

Topics: Inventory Management

Low Profit Margins – The Perils and Potential in Manufacturing

As a CFO, one of the common reasons I am brought into a manufacturing organization is to solve the mystery of “Why our sales are growing, but profits low?”  Most of the companies I work with have rigorous quoting processes that they assume will protect them financially, but in the end their actual monthly profit margins often fall short of quoted (and anticipated) profit margins.

Before diving into an examination why profit margins lag behind sales growth projections it is important to take a look at accompanying financial reports. These are categories from a simplified manufacturing income statement:

In this article we will discuss materials, direct labor and manufacturing overhead as they relate to gross profit.

Topics: Analysis Budgeting Manufacturing Profit Margin