Calculating Your Business’ Health – Effectively
Financial measures and ratios offer a powerful method of evaluation. They can help improve a manager's understanding of the business' health while identifying areas that need attention.
It is important to look at both current year and upcoming trend figures. Having good ratios does not guarantee success. However, knowing how to best calculate key performance indicators is a step in the right direction.
The key performance indicators this template will help you formulate include:
- Financial Efficiency
- Repayment Capacity
- Key Margin Metrics
- Indirect Cost Targets
- How each term is calculated
- What the goal is
- And additional details