We’d all love to know how financially healthy our companies are and which areas are performing best. Not only can you then use this information to help improve your business performance but others also use this information to assess whether to provide funding to you, among-st other things.
So how do you achieve this? Ratios are a key tool to assess the financial health and performance of your organisation. Once you’ve selected those ratios critical to your business and market, you can then use these to assess not only performance over time but also compare yourself to industry averages to spot trends and benchmark yourself against your competitors.
Ratios do not provide answers in themselves, they require interpretation and understanding in order to take your business forward to the next level. This is where their power lies – only when you understand where you are can you take the right decisions to enhance your business performance.
Profitability analysis undertaken on your different revenue streams will help you identify which areas of your business are performing best and therefore where you need to devote further attention to build on these successful elements. Furthermore, your decision making will be enhanced regarding how to treat more poorly performing areas, for example do you need to stop this revenue stream or do you need to focus more strongly on it to bring it up to the desired level?
There are many different ways to assess the financial health and performance of your organisation. Fortunately, we have a concise one-day training course to help guide you with the tools and techniques that will be relevant for your business. The day is fun and inter-active not to mention very practical with lots of confidence building practise on how to measure the financial health and performance of your organisation. You will look forward to implementing these the second you get back to the office! It’s also an excellent opportunity to network with other businesses who share your desire for greater success and prosperity.
We can offer open courses in May in Leeds, Birmingham and London and, of course, we can always come to you to deliver the course in-house.
Call us on 01423 861122 or email us at info@ripleytraining.co.uk for further information. Details can be found on our website – simply click and book! Don’t see a date or location you like – please ASK!
I look forward to welcoming you very soon and helping you to take your business performance to the next level.
Author: Mike Smith
