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How it’s Calculated   Growth Capacity calculation:   $ of Net Profit – ($ of Current assets - $ of Current liabilities) = ______________________________________  x 100                                        Turnover   How it’s Used   This ratio shows whether [...]

The Net Profit Margin is vital as it reveals how effectively a company converts revenue into profit after expenses..Read More

Net Profit per Owner measures the profit each business owner receives after all expenses are covered. This metric provides important insights into the financial health of a business, helping owners understand how effectively their operations generate returns. It also highlights opportunities to improve profitability and efficiency, making it an important tool for assessing performance. By [...]

Performance benchmarking measures a business’s financial performance, or KPI’s, against industry competitors…Read More

COGS are the Cost Of Goods Sold and the term relates to variable expenses which increase as more products are sold… Read More

What is ‘Employee Wages as a Percentage of Total Income’? Home Articles Business Benchmarks Reviewing employee wages is a crucial activity for any business owner. When monitoring and evaluating employee wages, the owner’s wage should be excluded. Employee wages also excludes all superannuation and bonuses. Total income refers to the total revenue (being sales and [...]

How it’s calculated   Revenue Per Employee is calculated as:   Revenue Per Employee = Total Revenue / Total Full Time Equivalent Employee   See here for explanation of Full Time Equivalent Benchmark Calculation   How it’s used Revenue per employee is an important financial benchmark because it aids in determining the relative average financial [...]

CALCULATE FTEs NOW - Jump to our FTE Calculator What's an 'FTE'? Full-Time Equivalent (FTE) is the measurement of how many full-time and part-time employees a company has. It is NOT headcount. Some people in your business may have only worked for part of the year, or are on part-time/casual arrangements. In these cases, the [...]