Posted: 30.06.2021 | 10:24
One of the most used tools in the financial planning and analysis process is financial indicators. Financial indicators summarize corporate performance and compare companies within the same industry. Planning and analysis processes are facilitated in modeling and analysis using financial indicators. Investors analyze the financial indicators of relevant institutions to measure the performance of company shares and accordingly
A detailed research should be done to ensure that the correct pricing is made for the services offered. Or, it should be checked whether the desired income is obtained by creating enough value for the customers. As long as value is created, price will be the second important criterion for customers.
Know who the best employees are and how they should be rewarded. Research should be conducted on the development of personnel who add value to the business.
Invoicing and collection management and the average number of days the collections take place should be controlled. An economical, useful invoicing, tracking and reporting system designed for small and medium-sized businesses will make things much easier.
In order to calculate these parameters, it is necessary to obtain balance sheet and income statement data from the accountant. Receiving these data at regular monthly intervals brings with it the opportunity to compare.
Gross Profit (% and TL)
Gross profitability is the amount to be reached by subtracting the cost of sales from the net sales in the income statement. When this amount is divided by net sales, the gross profitability ratio is obtained. Gross profitability is the first item to be looked at in the income statement. It helps to detect some problems early, especially when followed proportionally monthly.
More detailed operational data such as hours spent per customer can be obtained, gross profitability by customer can provide more insight
Time to Collect Sales
Due to late payment customers, financing problem has become one of the most important problems of newly established companies. Especially when this period is calculated on a customer basis and followed on a monthly basis, it will be easier to solve collection problems.
Working capital indicates operational efficiency. Money that is over-reliant on receivables and inventories cannot be used to cover the company's mandatory payments. Therefore, it is very important to make the collections on time and not to put too much money into the stocks in order not to increase the need for working capital. Otherwise, the business will be deprived of income from alternative uses of capital. In growing companies, the growth of working capital is inevitable. However, overgrowth of working capital can put the company in severe cash crunch.
Customer Productivity Per Employee
Especially in the service sector, the most important and most important source of the enterprises is the employees of the expense item. Efficiency should be monitored by using how much time employees spend on customer basis and revenue rates from customers. This rate is checked monthly for low income customers or inefficient staff.