Preface
THIS BOOK IS INTENDED for all corporate managers who need to understand the performance levels of their departments. It contains performance measurements for the accounting, engineering, logistics, production, and sales departments. These measurements cover not only financial matters, but also those related to efficiency, effectiveness, capacity, and market share. In addition, the book includes measurements related to asset utilization, operating performance, cash flows, liquidity, capital structure, return on investment, and market performance. These latter categories are of great interest not only to the accounting and finance departments, but also to a company's creditors and investors.
There are nearly 250 measurements itemized in this book. Each one is accompanied by a complete description, an explanation of the calculation, an example, and cautions regarding its use. The cautions are of particular use, as they describe the elements of a measurement that can be modified to deliver misleading results, different measurements that may work better in certain situations, use on a trend-line basis, and other measurements that should be used to reinforce indicated results.
The book also describes how to use an electronic spreadsheet to compile a standard set of measurements, using Microsoft Excel as the template. This is especially useful for investors and financial personnel who need to compile information about a company's long-term performance.
Anyone who wishes to create ...
