What Are the Key Financial Metrics Business Leaders Should Know?
Understanding key financial metrics is essential for effective leadership. Some crucial metrics include:
Revenue: The total income generated from sales, crucial for assessing business growth. Net Profit: The profit remaining after all expenses are deducted, indicating the company’s profitability. Cash Flow: The net amount of cash moving in and out of the business, essential for liquidity management. Return on Investment (ROI): Measures the profitability of investments, helping in evaluating investment decisions. Debt-to-Equity Ratio: Indicates the financial leverage of the company, important for understanding the risk level.