Business Area Data Model

Business Metrics

Business metrics are the accepted ratios and algorithms used by the financial and business community to judge the performance of a business.

Business metrics go beyond simple numbers and tell what those numbers mean and how they apply to the business, which is why the study is frequently referred to as 'ratio analysis' or 'comparative analysis'.

Traditional financial statements present valuable information. However, they are prepared to a large extent for those external to the company. Business metrics are focused upon the internal operations and decisions in operating the business and for use by management in dealing with internal problems and issues.

Regardless of how important a stand-alone number appears, it is within the context of other data that it becomes dynamic information and not simply static data.

Business Metrics or ratios are grouped into six (6) categories:

  1. Debt and Capital

  2. Sales

  3. Profit

  4. Efficiency

  5. Marketing

  6. Investment

The Business Metrics data model presents several hundred business metrics that are used for standard reporting as well as metrics used by specific industries.

Book Value Per Share RatioComparative Annual Sales Ratio
Capital to Liabilities RatioCurrent Customer Booking Ratio
Cash Flow RatioExpense Growth Ratio
Debt to Equity RatioIncome to Sales Ratio
Dividend Yield RatioInsurance Expense Ratio
Income From Operations RatioInventory Turnover Ratio
Net IncomeReturn On Assets Ratio
Pretax Profit On Sales RatioReturn On Marketing Expenses Ratio
Price To Book RatioSales Budget Compliance Ratio
Back Order RatioVendor Financed Assets Ratio
Bad Debts Ratio

The Business Metrics model provides a well-documented, comprehensive repository of business metrics information that can be applied to analytics, reporting or act as the 'target' for integration of similar data from related business entities.

This model can be seamlessly integrated with the Accounting & Financial Reporting model.