What kind of key performance indicators should be used to monitor financial performance?
To review the Key performance indicators that can be used to monitor financial performance are as follow:
Current ratio should be above 1;
Debt equity ratio should be in the form of 2:1
Key management person of the company should not be changed;
Corporate governance should be expedite;
Substantial growth in revenue of the company;
Cash conversion cycle should be less than 7 days;
Debtors days should be reduced to 7 days;
Annual returns should be filled on time;
No delay in repayment of statutory compliance
Financial KPIs (key performance indicators) are metrics organizations use to track, measure, and analyze the financial health of the company. These financial KPIs fall under a variety of categories, including profitability, liquidity, solvency, efficiency, and valuation.
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