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Social media is an invaluable tool that helps businesses communicate important information and nurture quality customer relationships. Successful business executives and marketing teams understand the...
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Call center metrics evaluate the effectiveness of customer service teams. They help gauge the productivity and performance of your employees and compare progress to business...
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key Takeaways PDCA optimizes the organization's processes Many organizations in areas like manufacturing and management utilize the Plan Do Check Act cycle to adjust to...
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KEY TAKEAWAYS A high turnover rate is not beneficial to any organization. HR professionals use turnover rate metrics to understand where they need to make...
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Key Takeaways HR metrics assist human resource managers in measuring employee effectiveness Businesses of all sizes and in all industries can utilize HR metrics to...
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Key SaaS metrics help to determine the profitability of your business. They answer valuable questions such as how to boost customer acquisition. By 2027, the...
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Key performance indicators (KPIs) show how well you achieve your business goals. Metrics monitor the status and progress of your business operations. Big data enables...
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ESG Metrics are critical for enterprises to assess their ecological, social, and administration matters. Explanation of Environmental, Social, And Governance (ESG) ESG (Environmental, Social, And...
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Project Margin Definition Project margin is a critical KPI (Key Performance Indicator) that determines an organization's financial success. It highlights the expense and income, and...
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What are performance metrics? Performance metrics are data that represent an organization’s performance, abilities, and actions. These metrics provide an overall assessment of the health...
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Definition of Avoided CostAvoided cost is a KPI that measures the expenses that would have been incurred if a resource were not available, a repair...
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Operating cash flow (OCF) is the cash a business generates from regular operations. It doesn't consider secondary revenue sources such as investments. The operating cash...
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As a project manager, performance is everything. Businesses invest their time, capital, and human resources into making projects work successfully. So how do you tell...
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Net Retention Rate (NRR) is a crucial KPI for any business. It measures the percentage of customers who continue to make purchases after their initial...
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Customer lifetime value is the profit an enterprise can generate from a single customer throughout the business relationship. Do you know a 5% increase in...
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In only a few short years, the cost of acquiring new customers has increased more than 60%. And with the boom in digital marketing, the...
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You may hear people talk about key performance indicators, but you may not understand what they entail. After all, the key indicators for each business...
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As a business owner, there’s nothing quite as satisfying as repeat business from your customers Besides the sense of satisfaction, repeat customers are It's also...
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Introduction To produce anything, including services, businesses of all shapes and sizes need raw materials and equipment. The process through which these businesses acquire their...
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OKRs help teams set objectives that can help teams determine what is expected of them and their performance. Everyone on the customer support team-- whether...
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In order to be sound in your financial goals, you need to have a great source of knowledge on every possible investment practice and technique....
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This article covers the far-reaching topic of the asset coverage ratio. We’re talking about a risk measurement whose aim is to calculate a company’s capability...
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When you work in a company, you will obviously want every process to stay stable and healthy. You will also want to have a birds’...
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OKRs are goal-setting tools that deliver disciplined execution of goals and ideas. As an organization you should definitely need to focus on customers, and customer...
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Moving on, when it comes to account summary, this usually refers to the way in which a customer service agent deals with a customer. Evidently,...
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As you were growing your business, you would have come up with strategies that strengthen the relationship between what your business offers and the customers....
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OKRs are the most prominent task and performance management tool that allows organizations to manage the overall performance of the employees. The HR department being...
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Human Resource (HR) is a critical business function that recruits and nurtures the most precious resource for the organization – their people. However, very few...
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There are many ways you can determine an employee’s satisfaction with their job. You might ask them to rate their engagement with the work, look...
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“What kind of benefits does your company offer?” This might very well be the first question a potential employee asks. Benefits can make or break...
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The discussion regarding the most important metrics in human resources is open to debate. However, most people agree on the fact that the candidates interviewed...
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Cost per hire refers to the amount of money your company spends to hire recruiting talent. The total cost spent to recruit a talent covers...
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While most organizations tend to overlook and underrate HR metrics, their efficiency in assessing the policies, employees and other important aspects is undeniable. Assessment and...
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HR metrics are generally overlooked by most organizations but underrating them might not be the best idea – particularly if you’re an entrepreneur who desires...
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When you own a company, you know that the employees are going to be different from each other. They are not only of different genders,...
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The Diversity Rate metric is important for a company because of several reasons. Probably the most important one is the fact that the said company’s...
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A common mistake that companies make when onboarding new employees is conducting inadequate training sessions. At times, an employee might not learn everything they need...
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There’s a rule of thumb that applies to all companies in the world: the employees are divided into productive and procrastinators. When those procrastinators do...
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It should come as no surprise that if they are unhappy, employees will leave the company that they work for. A couple of years ago,...
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The First Year Voluntary Termination Rate is yet another Human Resources metric – of course, it’s also one that’s very important to a company, as...
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It goes without saying that most employers try to offer their employees the best healthcare plans. However, health care plans are becoming more and more...
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As CEO or part of the management’s team of a certain company, you will rarely look into how the hiring process is being done –...
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The termination rate of a company is the percentage of people that decide (or are forced) to leave the company for various reasons. The voluntary...
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Each entrepreneur is concerned about the prosperity of their business. And a business’ prosperity is naturally linked with the productivity and preparation level of its...
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You’ve probably heard a lot of people complain about their workplace. They talk about how bad it is, and how they will never recommend anyone...
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The New Hire 90-Day Failure Rate is a Human Resources metric that’s used by businesses and companies in order to determine the percentage of new...
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As a company, you probably have your own employees that you can rely on a daily basis. They are your pillars that will help your...
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Diversity and inclusion in the workspace represent a sensitive topic that every employer must know of and apply. And not only must the employer apply...
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By now you should already be familiar with the Employee Satisfaction Survey, which should be taken once every 6 months. However, it can so happen...
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As the owner of a company, you probably have two types of employees: full-time and part-time. However, since part-time employees are only contributing a small...
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When it comes to HR metrics, the cost of workforce is the elephant and the room and the reason for that is quite transparent: in...
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A company needs to perform well, and if you’re an owner, you know a lot about that. Not only you need to generate sales targets...
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There are several situations in which your new employees could require training. For example, after a month of them being on the job, your company...
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When candidates apply for a job, they don’t always know everything it includes. Some of them meet the job criteria, while others don’t, and you...
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In order to maintain a healthy life and work properly too, employees need vacations. In order to make that possible, they need to have a...
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As an entrepreneur of a successful company, you want your employees to perform well. Sometimes, the term well is difficult to put in words, and...
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Employees, regardless of how long they’ve been employed at your company for, need to have a good performance. It is the only way your company...
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There are so many metrics that it’s hard to keep track of each and every one of them. One of the metrics that is often...
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Employees need to have a certain set of skills, as well as a lot of knowledge in the domain. When hiring new people, you want...
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Those who start up their new business do so with a plan: to be successful in their business in the long run. And for you...
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If anyone is getting into business without having no clue what the ROI is, they are in some serious trouble. When one owns a company,...
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If you’ve worked in a company for years on end, you probably realized that people want better salaries not on account of them being materialistic,...
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As you probably already know, simply hiring someone may not be enough to boost the performance of a certain department of your company. In this...
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Companies hate it when their people leave – but they hate it even more when a valuable person with vast experience leaves. According to some...
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It’s very rare that an employment at a certain company lasts for a lifetime – mainly because the average person works for about five years...
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How can a company assess that its recruiting process is efficient or not? One of the ways in which you can do that is by...
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The return on total assets can show if the managing team is effective at earning money from the company’s assets in a certain amount of...
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The retention ratio or plow back ratio is the calculation that shows you exactly what percentage of your net income is retained for the business...
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Residual income refers to the amount of money that is left after all the expenses have been paid for a period. The residual income can...
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To start with, the accounts receivable turnover represents an efficiency ratio. Thus, its main purpose is to assess the number of times a firm can...
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Also known as the coefficient of determination, r-squared is the statistical measurement that comes from the correlation made between the performance of a certain investment...
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The quick ratio, also known as acid test ratio, is used to measure a company’s ability to pay off its current liabilities when these come...
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In order to measure the amount of net income earned by a company with each dollar sales that are generated we use the profit margin...
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Also a financial metric, the price to sales ratio is used to measure the value that the investors put on a certain company for each...
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In today’s post, we’d like to focus our attention on the price to earnings ratio. This is a prospect ratio that calculates a stock’s market...
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The price of a company is compared to the underlying cash flow by using the Price to Cash Flow profitability ratio, also abbreviated as P/CF....
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The price to book ratio is renowned as an important financial valuation tool. Essentially, it is utilized in an attempt to appraise if a stock...
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The present value is, many times, referred to as the discounted value – and it a widely used financial formula. So, what it is used...
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This article will focus on presenting the specifications of the preferred dividend coverage ratio. This ratio assesses a corporation’s financial capability of paying the dividends...
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The payback period is a financial capital budgeting method that estimates the amount of time needed for an investment to generate cash flow and replace...
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The accounts payable turnover ratio is a liquidity ratio that indicates the ability a company has to repay its accounts payable. The repayment is done...
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If you’ve accessed this page, you are probably eager to find out more about operating leverage. Well, operating leverage is a financial efficiency ratio that...
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If you clicked on this article, you’re probably interested in operating income and what it means. Well, it will tell you what you need to...
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If you’re a beginner when it comes to finances, you would probably want to know what the operating cash flow means. Basically, it’s an efficiency...
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If you wanted to know what the Net Operating Profit after Tax is and how it works, you came to the right place. Net Operating...
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Ever heard the term “networking capital”, but you didn’t know what it means? If that’s the case, this article comes to your aid. The net...
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The net profit margin is used to find out whether a business is poorly managed and to see future profitability. By comparing the total sales...
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The net present value is used to calculate the difference between the cash inflows and outflows of a potential investment or project. To make it...
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If you work for a real estate agency, you may have heard about net operating income. This is a profitability formula that is used to...
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How well you administer your money is mainly up to you. However, the net interest margin ratio is a term that shows you how well...
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Net income also known as bottom line or net profit- is the amount of money that remains after you pay all debt and expenses within...
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Ever wondered how much 100 gums cost 20 years ago compared to today? Such calculations are simple, but for a company that could lose everything,...
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To better understand what the return on capital employed means, first we need to understand what the capital employed is. By employing capital, you will...
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When it comes to being in debt, no one likes that, especially companies, where “profit” is the most used word. They may put you in...
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This is a term used in microeconomics, and it’s quite a well-known formula. However, in order to get a better understanding of what marginal revenue...
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Everybody needs to break even, so this ratio will give you the insight of what goes too much or too little. In other words, the...
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Abbreviated as LTV, the loan to value ratio is a risk assessment measurement. It is used to calculate the amount that has been loaned as...
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The internal rate of return, also abbreviated as IRR, is used to identify which future projects or capital investments will have an acceptable return –...
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The financial ratio known as interest coverage ratio determines whether a company is able to make interest payments on its debt or not and that...
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Gross and net usually refer to income and it is also something that seems quite difficult to understand for some people. For example, you might...
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The profitability ratio called gross profit (also known as gross profit margin) is used to calculate the percentage of sales that are exceeding the costs...
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Also a profitability ratio, the gross margin ratio compares a business’ gross margin to its net sales, measuring if a company sells its merchandise or...
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The financial measurement called goodwill to assets is used to compare the intangible assets of a company – like a customer list, brand name, and...
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Usually abbreviated as FCF, the Free Cash Flow is an efficiency as well as a liquidity ratio. It calculates how much money a company is...
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Whether a company is able to pay off its fixed charges or expenses with its own income or not – before income taxes and interests...
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If you’re wondering what this ratio is, you’re just about to find out. It’s an efficiency ratio that measures a firm’s return on their investment...
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Before we engage in explaining the formula, you need to know what the difference between a shareholder and a stakeholder is. A shareholder holds a...
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Have you heard the term “expense ratio”, but it confused you? In that case, you’ve come to the right place, because you’re going to find...
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If you are the accountant of a business, there are certain things that you may want to keep in mind –one of these things being...
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An equity ratio calculates the number of assets financed by owners’ investments. Basically, it does so by comparing the total equity in the company to...
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As an investor, you will want to know that the company you are placing your bets on will bring a high return. Regardless of you...
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RONA - It may sound like some fancy name for a fancy person, but it’s actually the name of a finance formula – albeit one...
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You may be wondering what equity multiplier means. Well, it’s a leverage ratio that basically measures the part of the company’s assets financed by equity....
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A company needs a fair number of operating assets in order to continue functioning. This is practically what keeps the company going. The return on...
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The amount of money you allocate for the growth of the company tells a lot about the growth potential of a company, as well as...
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This financial ratio is used to show how efficient a company is at using its revenue in order to generate profits. Also called the operating...
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If you want to see for how long you have to invest your money in order to double it, with a given interest rate, then...
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This efficiency ratio is used to measure if a company is efficient at managing its non-operating expenses in order to generate sales during the normal...
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The enterprise value (EV) is a direct representative of the economic value of a company – in other words, how much money someone would have...
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When you want to understand how a certain company thrives in a particular industry, you need to have certain formulas in mind. An acronym for...
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The Sortino ratio is an alternative to the Sharpe ratio, as it isolates the effects volatility has on investments. This ratio is used to determine...
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EBITA, short for Earnings before Interest Taxes and Amortization, is a formula that calculates the operational profitability of a company by including the costs of...
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Also called the interest coverage ration sometimes, the times interest earned ratio is a coverage ratio. It can calculate the proportionate amount of earnings that...
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Shortened from Earnings before Interest and Taxes, and also referred to as the operating income, is an equation that measures the operating profits of a...
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Also known as the reward to volatility ratio sometimes, the Treynor ratio is basically a risk assessment formula. It can estimate the volatility in the...
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While the name may sound very fancy, this is actually a crucial method to understand the finance point of a company. Also referred to as...
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Every fundamental analysis tool works differently for every investor – so in order to understand the stocks, you need to know how to calculate them...
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The DPR (Dividend Payout Ratio) is the dividend amount that has been given to shareholders as payment – and which is in direct relation with...
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If you’re here, it’s because you are most likely curious about what the working capital ratio is and how it works. Also called the current...
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The defensive interval ratio is considered to be one of the most valuable liquidity ratios. Expressly, it focuses on calculating how many days it takes...
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The debt to income ratio is considered to be a valuable number – some people even say that it is as important as one’s credit...
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The debt to equity ratio is another important liquidity ratio. Fundamentally, it compares a firm’s total debt in relation to its total equity. The debt...
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An important liquidity ratio, the debt to capital ratio measures a company’s strategy when it comes to using its financial leverage. More specifically, it compares...
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To begin with, the debt to asset ratio could be defined as a leverage ratio, calculating the total amount of assets financed by creditors, as...
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The debt service coverage ratio is another financial ratio that provides insight into a company’s financial situation. Expressly, it determines a company’s capability of covering...
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Today, we will concentrate our attention on the debt ratio – a solvency ratio whose purpose is to measure a company’s total liabilities as a...
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The Unit Sales to Average Market Unit Sales metric is used by businesses to determine and track the total sales share of the industry –...
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Trial Accounts refer to those customers that are interested and committed to your product. Of course, being interested and committed does not actually mean customers...
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Each new product made by a company will come with its own costs – costs which will leave a hole in your budget until it...
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As an entrepreneur that is passionate about making your business reach the highest peaks, the term ‘tender’ might already sound very familiar to you. This...
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What does the store conversion rate stand for? As you should know by now, the store conversion rate is a widely utilized KPI, which effectively...
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Online presence is of paramount importance nowadays. It’s as simple as this, if your company doesn’t have a put-together website which successfully attracts a target...
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When calculating the selling costs to sales ratio, this is the job for the sales manager actually. Getting the calculation right will show you exactly...
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Owning a business can be a lot of work because you have to do a lot of things to ensure the well-being of the company...
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When you own a business, you want it to perform greatly, and obtain success. You need to put in a lot of work to do...
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This metric helps you learn more about the productivity of your sales team – this is done by, obviously, analyzing the total average value of...
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To start with, sales turnover accounts for the total revenue a business generates during a given timeframe. Essentially, this ratio is genuinely useful for all...
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Have you ever thought whether there’s a way to measure and compare present sales to a target or past performance? If you did but had...
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The sales revenue per hour is a critical financial or production metric. It is widely used by all types of businesses, allowing them to determine...
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Every business launches new products on the market with a particular goal in mind: to reach a certain target that will bring them profit. However,...
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As a company owner, there’s no way you wouldn’t want to generate revenue. After all, it brings your business a lot of success. Taking this...
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When you are in the business of selling services, you need to do it by having a clear view on what your customers want and...
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Sales managers, field sales managers, in particular, might often feel clueless. That’s because they aren’t physically present in a given field, which makes it a...
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Sales opportunity helps you organize prospects based on the opportunity value and the probability of the sale’s closing. Although it may sound basic, you need...
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When you own a business, you’d do anything to make it successful. You probably think whether your sales team is able to increase the revenue,...
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Keeping track of a specific market segment is one of the most important things when it comes to marketing and sales. This is because tracking...
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The sales department is probably one of the most departments within your business – after all, without it, you wouldn’t be able to sell products/...
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The Sales Cycle Duration is a metric that, judging by its name, measures the total time between the initiation of a sale up until the...
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How able is your team to turn leads into new customers? If you are a business owner and don’t know that, you will be able...
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Did you know that there’s a ratio that could estimate the number of prospects engaged by your sales team in comparison to the number of...
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Sales are important when owning a business, which is why you should keep an eye on them and notice how well they perform. They perform...
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Another metric that we find to be of utmost importance is the one that calculates the sales by department. More specifically, this aims at measuring...
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Making a successful sale – this is what lies at the core of a successful business, whether it operates in the industry of retail or...
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When referring to Sales Bookings, we mean the bookings’ value over a certain time period. On the other hand, a booking means a committed, signed...
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The Revenue to Average Market Sales Revenue Ratio is used by businesses to compare themselves with the average revenue of the market they currently activate...
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KPIs are widely used in an attempt to measure a company’s success. The revenue per successful call is utilized for the same purpose: to assess...
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Customers are the core of every business and every entrepreneur should know that. If you’re an entrepreneur eager to help your business grow on every...
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After the completion of a project, there are two general tendencies. One of them is to continue the patronage with your firm by embracing a...
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This sales metric helps you determine the number of sales that are resulted from repeat purchases – basically, the number of times the same customer...
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The Purchase Frequency metric helps the sales manager see the number of times the same user makes a purchase within a certain period – in...
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The Promotions Conducted metric offers you just the insight that it’s referring to – the number of promotions that your business has conducted within a...
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As an entrepreneur passionate about selling their services in the best way possible and achieving success for your business, you want to have a clear...
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In order to keep a business successful, you need to make sure if the products are selling well or not. Therefore, you need a way...
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If you know about how weather predictions work, then you must have an idea about the potential revenue in the sales pipeline. But to better...
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This metric is tightly connected with the one referring to customer acquisition. You probably already know that, when trying to gain more customers that would...
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Running a business is far from being as easy as it may seem, at first glance. This actually implies analyzing the performance level, in hindsight...
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Every company nowadays is adding new products to its arsenal to increase its revenue. However, seeing a chart of the sales after adding the new...
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When asked what their closing ratio is, not many companies really know what to say – or if they do, they say it’s “x percent...
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If you’re an entrepreneur that is passionate about selling your services efficiently – while also having a clear picture about what your customers want and...
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As an entrepreneur who is passionate about the services that you are selling, in an efficient way, you will need to have a clear picture...
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So, you have identified your potential customers – well, now it’s time to contact and turn them into paying customers. If you don’t do this,...
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When you can’t generate enough leads for your company, you may turn around and ask for help from outside your company. So, what better way...
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Another metric that has been proven to be quite valuable for both staff managers and employees is the first appointment to sales ratio. What is...
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As soon as you start your own business, either it’s selling a product or a service, you and the rest of the team that’s handling...
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Coupons are a customer’s dream since they allow them to buy a certain product at a lower price. In the eyes of a small business,...
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After prospecting for potential customers for the products/services of your business, your sales team will most likely have a conversation with those customers – either...
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The Channel Margin is a pretty easy to understand metric – basically, it’s the difference between the price a manufacturer has on its product and...
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If you own a business, you already know the impact certain products have on customers compared to others. At the same time, you know how...
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When talking about the Average Purchase Value, it is referred to the average sales value of each processed sales transaction. Basically, it shows you what’s...
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As a business owner, it is utterly mandatory to turn to mathematics and formulas in order to track your financial operations. Categorically, there’s no way...
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Visitors are the ones driving traffic to your website and sustaining it. Basically, a website would be nothing without visitors, because it would serve no...
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Have you ever wondered what those packets sent and received on the small icon of your start bar are? When you've got a stable internet...
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When you analyze a website, in terms of traffic, you have to pay attention especially to two things, namely, the visits and the unique visitors...
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“Total visits” refers to the total number of visits your website got during a certain period. It’s something very simple, but something important, because it...
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To start with, the website traffic lead ratio provides specific information concerning the number of website visitors that actually converts to leads. This metric is,...
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Today we will focus on another important metric – namely the sessions by device type metric. Expressly, this metric outlines the given percentage of users...
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