To avoid financial risks and achieve sustainability, businesses need to understand important financial indicators. Below are the indicators that every SME should monitor to improve operational efficiency and make the right strategic decisions. 1. Revenue Revenue is a basic and extremely important financial indicator for any business.
It reflects the amount of money a business earns from selling goods or providing services in a certain period of time. Revenue not only helps you evaluate the business's sales ability but also serves as the basis for building other financial indicators.
Why is revenue important? Business germany telegram data Health Indicator : Revenue reflects market demand for your product or service. If revenue is growing steadily, it means you are on the right track. Forecasting tools : Based on revenue, businesses can forecast cash flow, profits and the ability to pay fixed costs.
How to track? Review monthly and quarterly revenue to understand growth trends. of growth or decline. Don't forget to analyze revenue by sales channel (online, offline) or by product/service group to determine strengths and weaknesses in your business strategy.
2. Gross Profit Gross profit is the amount of money left over after subtracting the cost of production or service from revenue. It is an important indicator that helps you evaluate the efficiency of production and sales.