What Metrics Should Leaders Monitor to Assess the Bottom Line?
To effectively monitor the bottom line, leaders should track several key financial metrics, including:
Net Profit Margin: The percentage of revenue that remains after all expenses. Return on Investment (ROI): The gain or loss generated relative to the amount invested. Operating Cash Flow: The cash generated from normal business operations. Gross Profit Margin: The difference between revenue and the cost of goods sold. Earnings Before Interest and Taxes (EBIT): A measure of a company's profitability from operations.