Usually, financial performance metrics such as sales revenue are typically available quicker as end-of-quarter or end-of-month numbers. How often you track indicators of your company’s financial performance also depends how quickly or readily available the information is.
The following indicators should be monitored carefully:
- Gross profit margin – what percentage of revenue is left after subtracting cost of goods sold
- Current ratio – helps you understand whether the business can pay its short-term obligations with its current assets and liabilities
- Working capital – cash that is immediately available which can be used to fund day-to-day activities
- Current assets subtracting current liabilities
- Total asset turnover – measures how efficiently a company uses its assets to generate revenue. The higher the turnover the better the company performance
- Operating cash flow – Measure of how much cash business has from business operations