Secure Client Area
Benchmarking
Benchmarking is the process of determining who is the very best, who sets the standard, and what that standard is. And how do we quantify that standard?
Working with you, once we decide what to benchmark, and how to measure it, our objective is to figure out how the ‘winner’ got to be the best and determine what needs to be done to get your business to this level.
Benchmarking is usually part of a larger effort, such as a Quality Improvement initiative.
Benchmarking tools can include:
Industry Analysis - Interested in knowing how your business compares against others in your industry? This type of analysis can provide information on the financial performance of businesses across a range of industries and at different turnover levels.
Breakeven Analysis - What volume of goods or services do you need to sell to cover your costs? Using the breakeven analysis we can find the breakeven point for your business.
Financial Ratio Calculators - Looking to identify key areas within your business that you want to improve? These are based on accounting standards and can be used to analyse the key performance indicators for your business.
Ratios should be considered over a period of time in order to identify trends in the performance of the business. Three sets of useful ratios to analyse your business in terms of debt, profitability and liquidity are:
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Debt Ratios |
Profitability Ratios |
Liquidity Ratios |
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Debt Ratio |
Net Profit Margin |
Working Capital |