Measuring success: Key performance 바카라 검증 사이트 Indicators to watch

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No matter why 바카라 검증 사이트 went into business, determining your company’s success comes down to one thing: money.

Measuring financial success relies on Key Performance Indicators (KPIs), which give 바카라 검증 사이트 the right information to allow 바카라 검증 사이트 to feel more confident in your business decisions. For example, how do 바카라 검증 사이트 determine pricing? Can 바카라 검증 사이트 afford to hire new employees? Can 바카라 검증 사이트 offer employee benefits?

So, the big question is: Are 바카라 검증 사이트 making enough money? Here are four KPIs 바카라 검증 사이트 should be watching to find out.

1. Gross profit trailing twelve months

At any given time, trailing twelve months (TTM) is the time period of the past 12 months. Every data point represents the 12-month total for that date. It provides a holistic view of the past year rather than a month-by-month calculation.

For example, if 바카라 검증 사이트’re analyzing the gross profit TTM for your company for August 31, 바카라 검증 사이트 would see an amount that represents your gross profit from September 1 of last year through August 31 of this year.

Gross profit is revenue minus the cost of goods or services sold. The cost is composed of two things: direct labor and direct materials. Direct labor is the labor cost to provide 바카라 검증 사이트 service. Direct materials are the non-employee costs for a job. For example, this could include things like traveling expenses, mileage reimbursement and subcontractors.

Gross profit tells 바카라 검증 사이트 whether 바카라 검증 사이트’re making your targets, and the profitability of your goods or services. It should be a key factor in your pricing.

2. Net income trailing twelve months

Net income, the most important measure of 바카라 검증 사이트 profitability, is the remainder after overhead expenses are deducted from gross profit.

If 바카라 검증 사이트 look at your data per month (rather than TTM), 바카라 검증 사이트 end up living month-to-month – getting overly enthusiastic in good times and terribly disappointed in bad times. A TTM report will give 바카라 검증 사이트 a real look at the economics of your business.

This isn’t to say that 바카라 검증 사이트 shouldn’t watch your net income month-by-month, but getting the larger picture can put things in perspective.

3. Realization rate

It’s amazing that so many business owners overlook this one. Realization rate is the total revenue divided by total employee hours worked. It will give 바카라 검증 사이트 an idea of how well 바카라 검증 사이트 are at pricing, staffing and managing your people. It illustrates how effective 바카라 검증 사이트 are with each job.

This is especially useful when determining which projects or clients are worth it to 바카라 검증 사이트 business. For example, 바카라 검증 사이트 employees spend a lot of hours on a project or client that earns little revenue, consider putting their time to better use.

Your realization rate will tell 바카라 검증 사이트 where your resources go and how much return on investment 바카라 검증 사이트 get.

4. Cash flow

Cash flow problems are one of the most common reasons companies go out of business. Without it under control, 바카라 검증 사이트 can’t grow your business. 바카라 검증 사이트’re always operating in panic mode.

Are 바카라 검증 사이트 collecting on money owed to 바카라 검증 사이트 in a timely manner and do 바카라 검증 사이트 have the money to cover your debts? If 바카라 검증 사이트 need help in this area, read “How to Improve 바카라 검증 사이트 Cash Flow with Better Bill Collection.” If 바카라 검증 사이트 don’t have a cash-flow problem, then it’s time to focus on your cash-flow forecast. This should give 바카라 검증 사이트 a six-week look at where your money is coming from and where it is going. A six-week forecast gives 바카라 검증 사이트 time to make a strategic plan if 바카라 검증 사이트 anticipate a period when your receivables won’t cover your payables.

Find at more about KPIs and profitability.

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