How to Measure the Success of Expense Control Efforts?
To measure the success of your expense control efforts, regularly review key financial metrics such as:
- Gross Profit Margin: Indicates how efficiently a company is producing goods or services. - Net Profit Margin: Reflects the overall profitability after all expenses. - Operating Cash Flow: Measures the cash generated from business operations. - Expense Ratios: Compare various expenses as a percentage of revenue to identify trends and areas for improvement.