Which key numbers help you asses your performance in an orga

Solution

Performance Ratios

Calculation

What It Measures

Cash flow to revenue

CFO / Net revenue

Cash generated per dollar of revenue

Cash return on assets

CFO / Average total assets

Cash generated from all resources

Cash return on equity

CFO / Average shareholders’ equity

Cash generated from owner resources

Cash to income

CFO / Operating income

Cash-generating ability of operations

Cash flow per share

(CFO –Preferred dividends) / Number of common shares outstanding

Operating cash flow on a per-share basis

Profitability Ratios:        Time Series Analysis (within company) OR Cross-Sectional Analysis (Between Companies)

Return on Sales

Return on Investment: Performance measure used to evaluate the efficiency of investment. It is one of most commonly used approaches for evaluating the financial consequences of business investments, decisions, or actions

Balance Sheet Ratios:

Liquidity: Ability to meet short term obligations

Solvency: Ability to meet Long term obligations