In order to improve and to sustain your company\u2019s activity, it is essential to permanently evaluate its financial and commercial health. Therefore, it is fundamental to select the appropriate Key Performance Indicators (KPI) to identify, so that the financial service can detect the strengths to build upon, and the weaknesses to optimize.<\/p>\n
In the following article, you will find some examples of Key Performance Indicators to integrate into your reports.<\/p>\n
Calculating the revenue fluctuation is most probably the most evident performance indicator to implement into your report. In fact, it will be an excellent scale to measure the company\u2019s financial health<\/span><\/strong><\/a><\/strong>. You can compare your revenue to your competitors\u2019 to position yourself.<\/p>\n Calculation: current sales revenue\/past year\u2019s sales revenue<\/span><\/em><\/p>\n In addition, it may be interesting to compare your actual financial performance with what you initially planned. Hence the interest in calculating your turnover variances: this consists of subtracting your actual turnover from your forecast turnover for a given period.<\/p>\n By regularly comparing your actual sales and forecasts, you can effectively analyze the evolution of your business and adapt your strategy continuously. It also allows you to improve your future forecasts and set more realistic business goals.<\/p>\n Another example of a KPI is the added-value calculation, which allows to measure the production value of goods made by a company and to stay informed of your company\u2019s development and activities.<\/p>\n It is a reliable representation and can be calculated in multiple ways:<\/p>\n Calculations: sales revenue – <\/span><\/em>cost of production<\/span><\/em><\/span><\/p>\n\n
The added-value<\/h3>\n<\/li>\n<\/ul>\n