From my experience a lot of business owners pay little attention to their business financial statements, despite this information being readily available.  Businesses that experience success generally monitor the following 8 Key Performance Indicators (KPI) – these can be obtained from your profit and loss and balance sheet:

1.     Revenue growth rate

2.     Gross profit margin

3.     Operating profit margin

4.     Net profit

5.     Net profit margin

6.     Return on Equity

7.     Cash Conversion Cycle

8.     Working Capital Ratio

If you would like to discuss further please contact us:

McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD

www.mcnamaraandcompany.com.au/contact-us

Phone +61 3 9428 1062

Email admin@mcnamaraandco.com