About this lesson
The aim of this lesson is to outline how you can use ratio analysis and key performance indicators to fine tune your business.
How much does it cost?
These lessons are provided free by New Zealand Trade & Enterprise.
Why you should do it
Ratio analysis is used to assess your past financial information (such as sales), and compare that to previous years, to see if there is a trend. Based on that trend you can determine whether your business is improving or declining. If it is declining then you can take appropriate remedial action.
You can also make use of Key Performance Indicators (KPI's) to look at the things that need to happen in your business that are crucial - and then measure them. For example getting all orders finished in a day might be a key indicator - and easy to measure how much is left over at the end of the day.
Who should complete it
Small business owners who want to take control of their business and make better use of the financial information that is available to them.
What you will end up with
An understanding of Ratio and KPI analysis methods and how you can implement these to help your business grow. Plus: