In today’s highly competitive environment, managing your company’s resources is more important than ever. The days of holding a wet finger up to the wind are gone for good.
Most companies are very familiar with the creation and analysis of their quarterly and annual financial statements. These documents are vital for the long-term view of a company’s results and their future prospects. With and FRx, these financial reports are very easy to create and distribute.
For a more immediate and detailed view of a company’s current position and near-term prospects, additional views of the company are needed. Typically, these are expressed as ratios, and are collectively known as management metrics. Return on investment (ROI), for example, is a tool commonly used to determine which investment option would yield the highest return. By comparing the ROI of competing potential uses for the company’s resources, managers can identify the optimal investment strategy.
Building on the basic ROI model, a company can include a factor designed to identify and quantify the relevant risk factor on the investment options being considered. Investments that yield a very high return may also include a very high risk component, and a prudent management team may choose to pursue an investment with a lower risk factor, accepting the slightly lower return that it will produce.
With Dynamics GP and the full complement of data analysis tools that is provides, your company can quickly adopt and benefit from a full range of these metrics. By moving from a highly subjective world of “this investment feels right” to a more objective world of metric creation and analysis, the ability to “Manage by Metrics” will result in the identification of optimal strategies and the pursuit of appropriate opportunities.
Other Management Metrics that are supported by Dynamics GP include:
Financial Metrics:
- Assets under Management
- Claims Loss Ratio
- Operating Ratio
- Inventory Turns
- Current Ratio
- Quick Ratio
Business Metrics:
- Days Sales Outstanding
- Days Purchases Outstanding
- Days of Working Capital
- Days of Inventory Outstanding
- EBITDA
Implementing a complete business management solution like will provide your management team the necessary data and business analytics tools needed to use key metrics to actively manage your business.
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