This lesson is designed to give you an overview of the type of information presented in your personalized performance review, and a basic familiarity with the concepts discussed within it!
Here at WeDoBooks, each quarter, we prepare a personalized performance review that outlines your company’s financial strengths and weaknesses by scoring vital components of your operations, such as liquidity, profitability, sales, etc. The report uses a variety of ratios to identify the financial standing of your organization. In addition, each report provides tips personally customized to your business’ unique financial situation. These tips can be used as suggestions to improve the financial health of your company.
Each performance review assigns a score of 1-100 (1 worst, 100 best) to five major components of your company’s financial structure, highlighting both strong areas as well as areas needing improvement.
The five major measurements are:
- Liquidity: A measure of the company's ability to meet obligations as they come due.
- Profitability: A measure of whether the trends in profit are favorable for the company.
- Sales: A measure of how sales are growing and whether the sales are satisfactory for the company.
- Borrowing: A measure of how responsibly the company is borrowing and how effectively it is managing debt.
- Assets: A measure of how effectively the company is utilizing its gross fixed assets.