Fictional Kalvenor: choose three checks

Check 1: Margin Trend Verification. Observation: Inspecting the trailing 12-month gross margin breakdown in the category audit report, I see a 4% drop in product-line profitability. Possible explanation: This could be driven by rising component costs or discounting pressure. If margins are contracting due to unrecoverable supplier cost increases, my next step will shift from a pricing overhaul to vendor renegotiation.

Check 2: Inventory Turnover Analysis. Observation: Reviewing the inventory aging schedule, days sales of inventory (DSI) has risen from 45 to 85 days. Possible explanation: Slow-moving stock may be tying up working capital. If obsolete stock accounts for over half of this increase, I will prioritize a liquidation strategy rather than adjusting reorder quantities.

Check 3: Customer Churn vs. Acquisition Cost. Observation: Analyzing the cohort retention curves, churn in the mid-market segment spiked last quarter. Possible explanation: A recent product release or onboarding friction may be alienating users. If exit surveys point to feature gaps rather than pricing, my recommendation will pivot from discounting to product roadmap acceleration.