For many business owners, business success is vital for their retirement. Ensuring that your business is well protected is therefore paramount.
The following Key Performance Indicators (KPI) will help with business success:
The Break Even point tells a business owner what level of sales need to be achieved for their business to make a zero profit.
The Margin of Safety is another helpful defensive ratio. It tells the business owner how far sales can be reduced before they breakeven.
The Defensive Interval Ratio can inform a business how long it can continue to pay its bills without generating additional sales.
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
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