How to compare your business to competitors – Financial Benchmarking
KPI Name: Financial Benchmarking Balanced Scorecard Metrics
Related KPIs: Retail Sales, Sales, Credit Risk, Retail Banking, Mortgage, Financial Statement Analysis, Market Risk, Financial Risks, Operational Risk, Active Portfolio Management, Passive Investments
Customers also viewed: Business Benchmarking
Sample reports:
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Description by authors:
Applying the basics of benchmarking to financial aspects of the company helps it in digging the opportunities that earlier were not visible. The minute details emphasized to be followed in this approach are helpful in lifting the monetary returns of the company. The aspects, whose measurement can be useful are- Stakeholders’ Returns, Expenditure, Improvement and Financial Health Assessment.
Stakeholders’ Returns can be measured using indicators- Annual Revenue Rise, Average Return on stocks, Mean rate of Perks and Rise in Social Contribution. This group of KPIs takes care of the interests of stakeholders.
Expenditure can be calculated via parameters such as- Salary and Benefits Expenditure, Operational Expenses, Recruitment and Training Costs and Capital Expenses: Revenues.
Financial Health Assessment can be had with parameters like Current ratio, Inventory Turnover, Dividend Yield Increase Rate and Debt: Equity ratio.
Lastly, one can analyze the improvement gained via the ‘increase in recognition’, ‘% rise in EPS’, ‘% increase in surplus funds’ and ‘drop in instances of mismatch between sources and application of funds’.
KPI in Excel – Screenshot:
