Business financial trends like margin expansion, margin compression, top line and bottom line growth, and increasing or decreasing cash tell you how well your business is performing over time. This video explains what these trends are, how they're measured, and how you can use them to assess your performance.
- Trends are all about how your business performs over time.…There are trends you have to know…in addition to the basic financial trends.…Sure you need to know about Sales growth and profit growth,…but you also need to look at things like…Margin expansion or compression.…Are you getting more profitable over time…or less profitable?…Understand: Is your business accruing more or less cash?…Cash is the engine that keeps that business going.…You should also know about your…Operating Trends and ratios.…
Things like Head count increasing or decreasing.…Are there specific categories of Spend…that are increasing or decreasing over time?…Are your Raw materials getting more expensive…or less expensive?…There are some Competitive Trends…you need to have an understanding of.…Is your Market share growing or shrinking?…Is Utilization increasing or decreasing?…Are your Fill rates going up or going down?…Is your product immediately available…in inventory for your customers?…That's called the Fill rate.…
Can they get their product when they want it?…
- What business are you in?
- What's your market and who is your competition?
- What problem does your business solve?
- How are your products and services created? What are your pricing and growth strategies?
- How do you measure performance?
With the answers in hand, you can be assured your have the knowledge to make the best decisions for your business.
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- Define and explain business acumen.
- Describe different types of growth horizons.
- Identify critical elements of knowing your business.
- Explain the effects of price changes on profits.
- List common growth methods.
- Evaluate your initiative pipeline.
- Define common business terms.
- Assess trends and your competitive environment.