Decompose a portfolio-company EBITDA variance into volume, mix, price, variable-cost, fixed-cost, timing, and residual effects so the headline result can be reconciled to the operating movements beneath it.
About this interactive
This interactive converts two budget-versus-actual revenue groups into an exact price-volume-mix revenue bridge, carries those revenue effects through the budget variable-cost rate, then reconciles variable-cost, fixed-cost, timing, and unclassified movements to reported EBITDA. It supports variance review within our Private Equity FP&A practice.
Interactive view
Price, volume, and mix are derived from the two revenue groups. The bridge then carries those revenue movements through the budget variable-cost rate and isolates cost, timing, and residual effects.
Revenue variance decomposition
What the interactive shows
PRIVATE EQUITY EBITDA VARIANCE BRIDGE — ILLUSTRATIVE RECORD City Shift Finance REVENUE INPUTS Group A: budget 10,000 units @ $120; actual 9,000 units @ $125 Group B: budget 5,000 units @ $200; actual 6,000 units @ $190 Budget revenue: $2,200,000 Actual revenue: $2,265,000 REVENUE VARIANCE Volume effect: $0 Mix effect: $80,000 Price effect: −$15,000 Total revenue variance: $65,000 EBITDA INPUTS Budget variable-cost rate: 42% Actual variable-cost rate: 44% Budget fixed operating cost: $650,000 Actual fixed operating cost: $700,000 Timing / non-recurring EBITDA effect: +$30,000 Reported actual EBITDA: $575,000 EBITDA BRIDGE Budget EBITDA: $626,000 Volume contribution effect: $0 Mix contribution effect: $46,400 Price contribution effect: −$8,700 Variable-cost-rate effect: −$45,300 Fixed-cost effect: −$50,000 Timing / non-recurring effect: $30,000 Bridge-implied EBITDA before residual: $598,400 Unclassified residual: −$23,400 Reported actual EBITDA: $575,000 FINDING Revenue is $65,000 above budget, driven by $80,000 of favorable mix and −$15,000 of unfavorable price with no aggregate volume effect. After carrying revenue effects through the 58% budget contribution margin, the higher actual variable-cost rate and fixed operating cost more than absorb the revenue benefit. The bridge leaves −$23,400 unclassified between the entered operating drivers and reported EBITDA. METHOD STATUS Price-volume-mix is derived from two revenue groups. Volume changes total units at budget mix and budget prices. Mix changes the budget product mix to actual mix at actual total volume and budget prices. Price applies actual-versus-budget price differences to actual volume. Revenue effects are converted to EBITDA contribution using the budget variable-cost rate. Variable-cost-rate, fixed-cost, timing, and residual effects then reconcile budget EBITDA to reported actual EBITDA.
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