Preset Benchmark KPIs

Explanation

Preset Benchmark KPIs are designed to benchmark your business's performance against other businesses in the same industry, as well as track key metrics beyond simple GAAP performance. Preset Benchmark KPIs do not use your budget to calculate your desired goal, instead they offer a limited configuration of Relational to Last Year Averaging or Custom Defined Averaging calculation methods.

The 8 metrics tested with Preset Benchmark KPIs are Profit Margin, Asset Turnover, Return on Investment, Leverage Factor, Return on Equity, Payroll as % of Sales, Transportation as % of Sales and Shrink as % of Sales.

By default tracking is based on your specific goals as defined by you. You can also enable benchmark tracking to compare your performance against other company's within your industry. Because these are ratios, the total values are discarded and you are tracking performance against ratios comparing your company's efficiency to your goal and (if enabled) other companies.

Profit Margin tracks your Net Profit divided by Total Sales.

Asset Turnover tracks your Total Sales divided by Total Combined Assets.

Return on Investment tracks your Net Profit divided by Total Combined Assets.

Leverage Factor tracks your Total Assets divided by Net Worth.

Return on Equity tracks your Net Profit divided by Net Worth.

Payroll as % of Sales tracks your Payroll divided by Sales.

Transportation as % of Sales tracks your Transportation Costs divided by Sales.

Shrink as % of Sales tracks your Shrink divided by Sales.

Instructions

By default tracking is based on your specific goals as defined by you. You can also enable benchmark tracking to compare your performance against other company's within your industry. Because these are ratios, the total values are discarded and you are tracking performance against ratios comparing your company's efficiency to your goal and (if enabled) other companies.

Please speak with your financial advisor to set specific goals for your company.

For Advanced Learners

Relational to Last Year Averaging uses your prior year's data to set a month to month budget based on a percentage increase or decrease. When using Custom Defined Averaging, you must set your month to month budget explicitly. The system will then average the budget for each month providing you with your Annualized Goal for each month.

Report Documents

For details on Printing Reports see the section on Preset and Custom KPI Printing