Trend

Revenue, Margin and Volume Trend Last 12 Months

First, the respective metric (revenue, margin or volume) is calculated for every single time unit.
Customer level: time unit = month
Product level: time unit = month

The least-square approach is used to compute the trend. See the Fitting a trend: Least-squares section in the Linear trend estimation Wikipedia article.

Formula

• x is the month number (like month 1 would be the first month in scope)

• x̄ is the average month number

• y is the metric to consider, like margin

• ȳ is the average metric to consider, like average margin

To convert the trend value â back to a percentage, the following formula is used: â / average(metric)

Periods with no transactions are considered to have zero revenue, margin, and volume, and are included in the trend computation.

Example

Find the example in the the following attachment:

Trend Value with least square .xlsx

This calculation is utilized in the following portlets affected by the trend calculation change:

1. Global View

   • Customer Summary (Trends, Health Score)

   • Customer Health Summary (Health Score)

   • Trends (Trends)

2. Customer Detail View

   • Customer Summary (Trends, Health Score)

3. Customer Products Portfolio

   • Customer Summary (Trends, Health Score)

   • Trends (Trends)

   • Product Health Summary (Health Score)

   • Average Invoice Price per Customer Revenue Class Last 12M (Product Classification)

Revenue, Margin and Volume Trend YTD

The least-square approach is used (see the Last 12 Months computation above). This calculation is utilized in the portlets (mentioned above) affected by the trend calculation change.