Today’s post is by Randy Russon, founder of TOPCFOS
Welcome to our Blog today! TOP CFOS offers the finest outsourced CFO services to companies anywhere in the world who want to take their organization to the top. We absolutely love being a part of your success. We also love to be the catalyst behind your firm’s soaring profits! And, for your convenience, we provide an RSS feed down at the bottom of our website so you can subscribe to our blog. Today’s post comes from the Finance category on our website and is entitled Industry Comparison Reports.
When you’re in business, you sometimes feel like a lonely island. What I mean by this, is you always wonder how your competitor down the block is doing in comparison to you. Are they making more money than you are? What areas are they struggling in compared to you? Wouldn’t it be nice if your competitor would just let you look at their books? However, this probably won’t ever happen. To solve this problem, TOP CFOS offers industry comparison reports where we can compare your business to that of your peers. These industry comparison reports take the average of the industry you’re in and compare it to your company. This way you get a real feel as to where your business stands in relation to most of your competitors.
If you go to the home page of our website right now, you’ll find an icon in the upper right corner that says, “Get Your Free Industry Comparison Report Now!” This is where you can obtain your free copy of the report. Feel free to click on this icon and fill out the information so you can obtain your free report. Go ahead and do it now. Three areas industry comparison reports look at are net profit margins, liquidity ratios and turnover ratios. Please let me explain what each of these mean.
Net profit margins simply mean how much money you have left over in your business after all is said and done. If you bring in one dollar of sales and you have a nickel left over, this means your net profit margin is 5%. I have one client who’s in the insurance industry who consistently has over 70% profit margins. This is one incredible performance. I’m sure he has a smile on his face as he watches this money land in the bank every month. The next major area industry comparison reports look at are liquidity ratios.
Liquidity ratios measure how easy it is for your business to obtain cash. A company with little or no debt would have a very high liquidity ratio, hence their risk of default on either payments to creditors or vendors would be very low. The last area industry comparison reports look at are turnover ratios.
Turnover ratios measure how quickly assets within a business can be turned into cash. A retail store with a high inventory turnover ratio means they are managing their inventory efficiently and are able to quickly turn their inventory into cash. Industry comparison reports let you see exactly how your business is doing in these three important areas – net profit margins, liquidity ratios, and turnover ratios. Armed with this knowledge, you are better able to make smarter and faster decisions about your business, thereby becoming more profitable.
We hope you’ve enjoyed our Blog today. Please remember, TOP CFOS offers the finest outsourced CFO services to companies anywhere in the world and would love to be a part of your team. Feel free to reach out to us anytime. Your feedback is most welcome, and we invite you to share this post with friends and associates. During the month of April, we are offering a free service to our readers. We are offering free CFO services during the entire month, all at no charge. Our contact information can easily be found here on our website, so give us a call today! Our next post will come from the Human Capital category on our website and is entitled Teamwork. And, thank you for joining us!