Business Metrics Business Area Model

Business metrics are the accepted ratios and algorithms used by the financial and business community to judge the performance of a business.

These metrics are derived from individual business areas contributing discrete data that become that variables of algorithms used to calculate performance metrics.

The Business Metrics Business Area Model presents several hundred business metrics that are used for standard reporting as well as metrics used internally.

Examples of the former are:

>  Book Value Per Share Ratio
>  Capital to Liabilities Ratio
>  Cash Flow Ratio
>  Cash Flow Ratio
>  Debt to Equity Ratio
>  Dividend Yield Ratio
>  Income From Operations Ratio
>  Net Income
>  Pretax Profit On Sales Ratio
>  Price To Book Ratio

Examples of the latter include:

>  Back Order Ratio
>  Bad Debts Ratio
>  Comparative Annual Sales Ratio
>  Current Customer Booking Ratio
>  Expense Growth Ratio
>  Income to Sales Ratio
>  Insurance Expense Ratio
>  Inventory Turnover Ratio
>  Return On Assets Ratio
>  Return On Marketing Expenses Ratio
>  Sales Budget Compliance Ratio
>  Vendor Financed Assets Ratio

The Business Metrics model provides a well-documented, comprehensive repository of business metrics information that can be applied for analytics, reporting or act as the 'target' for integration of similar data from related business entities.

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