Business Intelligence systems can track, interrogate and analyse data in all three time periods: PAST: Historic data that provides an indication from where you have come. It is static and whilst it can be used for analysis, trending, benchmarking etc, it has a small impact on your organisation's current performance. For the sake of … [Continue reading...]
Author: Unknown Used For: Accounting, KPIs, Measuring Cash Flows Overview The Cash Flow from Operations Ratio is a method that helps to determine a company’s short term liquidity, or whether or not it is able to pay off its current liabilities. One may also say that the cash flow from operations ratio is a measure of … [Continue reading...]
Author: Anelda Used For: Accounting, KPIs, Measuring Cash Flows Overview Cash Value Added Ratio is a financial measure to gauge the amount of cash generated by a company through its operations. It’s also known as the Cash Value Added, CVA or the Cash Value Added Model. It is used by investors to measure the … [Continue reading...]
Author: HOLT Value Associates Used For: Accounting, Financial Management, KPIs Overview It is not easy for potential investors to draw any significant conclusions about the health of a company based purely on accounting earnings. Accounting data can sometimes be misleading and so cannot be completely relied upon to … [Continue reading...]
Author: N/A Used For: Accounting, Financial Management, KPIs Overview The Cash Ratio (CR), also known as the Liquidity Ratio or Cash Asset Ratio, is a measure of a company’s immediate liquidity, i.e. its ability to pay off all its liabilities immediately without having to sell off any of its inventory. The … [Continue reading...]
Author: Edward I. Altman (1968) Used For: Predicting Bankruptcy; liquidity measurement ratios Overview The Z-Score Formula was devised by Edward Altman in 1968 to calculate the likeliness that a firm will enter bankruptcy within a period of two years. The formula uses common business ratios derived from income and balance … [Continue reading...]
Overview Break Even Analysis is used in financial management, accounting and marketing components of business intelligence systems. The break-even is the point where a business’ expenses and revenue are equal ( i.e. no loss and no profit) and provides an important sales target that an organisation needs to achieve before they will start to … [Continue reading...]