Difference in P/L line items between a SaaS and Manufacturing company?
Got asked this during an interview for growth equity and I was really only able to say that margins, depreciation and interest expense would probably be different. Am I missing something else? I feel like those line items are the main ones. I would assume they might have been also looking for an increase in sales and marketing expense.
Would appreciate any insight!
Why don’t you go look at a saas 10k vs. a manufacturing 10k
Because saas growth equity companies are not public and I’m looking for boiler plate answers to the interview question
It’s a boilerplate question though. Why wouldn’t you just walk through each line item and talk about how they differ? You don’t need to mention how Klaviyo’s S-1 pg. 57 differs from Stanley Black & Decker’s, just broad strokes how their income statements differ.
Right but I feel like I answered the main points but the interviewer made me feel like I was missing something obvious. That’s why I ask because I know the different lines in P/L and the ones I mentioned in the post are the ones I have learned about that differentiates a saas growth company to a manufacturing company.
Would also typically see ARR for a SaaS business vs. revenue for manufacturing business.
Another one is Cash EBITDA vs. regular EBITDA.
Just think about the business models. One is very asset intensive, and the other very asset light. What line items would either be unique to, or greater under, each of those models?
Manufacturing: freight; equipment rental; repairs and maintenance; inventory adjustments; product returns; depreciation (from purchase of PP&E);
SaaS: labor; computer / IT expenses; sales & marketing; professional fees; amortization (from capitalized development costs);
Inventore facere culpa tempora. At eius quia cum. Ad aut quo accusamus officia illum. Natus vitae possimus rem ad. Qui assumenda fugit aliquid illum. Atque tempore aut pariatur veniam et aut non. Quibusdam cupiditate non eos saepe quo ipsam facere.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...