Slide 4:
Profitability: other Return on assets ratio
For every $ of ave. assets, business makes X cents profit. Return on investment ratio
For every $ of ave. owner’s investment, business makes X cents profit.
Slide 5:
Efficiency KPI’s Efficiency: relates to the quality of management, i.e., how well the assets are managed or used or utilised. The skill to minimise waste, maximise return.
Stock turnover, done
Debtors turnover, done
Creditors turnover (not an asset!), done
Asset turnover or Sales turnover, new
Slide 6:
Liquidity KPIs Definition of liquidity
Best liquidity indicator is the Cash Budget (projected)