Why do we need to break down revenue structure?

Each revenue stream carries its own story. Some lines of business generate higher margins because they require specific know-how, while others face intense competition and are easily replaced — leading to thinner margins.

That’s why we can’t simply take total revenue, apply a growth rate, and call it a forecast.

When we request for information, we prefer a breakdown into categories. It helps us see:

  • Which streams are stable and defensible
  • Which ones are vulnerable and low-margin
  • How the mix is likely to shift over time

By breaking down the revenue structure, we gain a clearer view of how the company really operates. This lets us build projections that are more plausible, defendable, and closer to reality.

At ORNA, we don’t just look at totals — we break things down to understand the real drivers of value.
#BusinessValuation #ORNA #DCF #Consult


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