Business Financial Metrics
What they are and why they are important to small business owners.
Definition
Financial Metrics are the key performance indicators for a business. These include Accounts Payable Days, Accounts Receivable Days, Net Profit Margin, Overhead Growth, Sales Growth and Inventory Days among others.
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How it is Used
These metrics are useful in evaluating the performance of a business through benchmarking against other competitors in the industry.
Additional Information
Looking at various financial statements, such as the Income Statement and Balance Sheet, can help identify Financial Metrics to use when analyzing the performance of a business. It is important to note that some Financial Metrics, such as financial ratios, have to be calculated using values found on these financial statements.
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