Financial Analytics Scorecard

1. When I have sales growth, I can tell how much profit is attributable to revenue growth versus margin management.

• True
• False

2. When looking at my Income Statement, I am clear on which line item improvements would have the greatest impact on profitability.

• True
• False

3. I can confidently tell from my financial statements how employee productivity is changing over time.

• True
• False

4. I have a set of key sales ratios to help me measure our progress.

• True
• False

5. I know how my margins compare to similar companies in my industry.

• True
• False

1. When looking at my balance sheet, I am clear on what accounts could have the greatest impact on cash flow.

• True
• False

2. I know how much cash it took to finance my sales growth last year.

• True
• False

3. I maintain enough working capital to mitigate liquidity issues.

• True
• False

4. I know how to calculate my cash conversion cycle (how many days until a dollar deployed in my business comes back for redeployment).

• True
• False

5. I can calculate my sustainable growth rate

• True
• False

1. I completed an enterprise valuation using accepted valuation methods in the last 12 months.

• True
• False

2. I utilize an enterprise valuation each year to measure progress.

• True
• False

3. I have a good understanding of which specific operating changes will directly impact my company’s value.

• True
• False

4. I know the key risk factors others would consider when evaluating my business for sale.

• True
• False

5. I have positioned the business to maximize the transferable value.

• True
• False

1. I have a working model that I use at least annually to see how my business will generate and consume cash over the next three years.

• True
• False

2. Each year, our team forecasts our margins, cash needs, debt capacity, and enterprise value for at least the next three years.

• True
• False

3. I run a three-year forecast on the impact of major growth or cash commitments before making decisions

• True
• False

4. My team runs a forecast model in advance on the impact of significant financial strategies.

• True
• False

5. We run forecasting models to see the impact on enterprise value several years out.

• True
• False

1. I know how to position my company to receive the most competitive lending rates from banks.

• True
• False

2. I know at what rate of growth I will outstrip my capacity to fund operations internally, and will have to seek outside capital.

• True
• False

3. I know how specific changes in business operations can impact my return on equity.

• True
• False

4. My team annually conducts collateral analysis, cash flow reviews, and leverage metrics to determine how lenders might view our loan risks.

• True
• False

5. I know the key ratios lenders use to assess my debt capacity.

• True
• False

1. I know how much capital I need to last me throughout retirement.

• True
• False

2. I have a roadmap to build enterprise value to meet my retirement needs.

• True
• False

3. My company has a documented succession plan with appropriate funding mechanisms in place.

• True
• False

4. I have the information to be able to identify when the timing is right to consider a transfer of the business for maximum gain.

• True
• False

5. I feel confident that I have a forecasting model that will assist me when I plan on retiring.

• True
• False