Performance Dashboards
Valuation Metrics & Performance Dashboard Elements – Rolling 12 Month Graphs
Today’s blog will introduce you to the 12-month rolling graphs and performance dashboard elements.
Rolling 12 Month Graphs
Year-to-Date (YTD) financial statements are almost useless until the 4th quarter. Almost all financial software programs have YTD as their standard. A much more effective tool is a 12-month rolling history which can also be used to create a 12-month budget monitor.
A 12-month rolling metric tracking system can work on most performance metrics. It works by adding up the 12 months data and then insert that data point monthly into a graph or other time basis. For example, if you have a 12-month rolling point and want to add this month (say June) then you add this June into the sum and remove last June’s number.
Valuation – Performance Metric
It is recommended that a business valuation is done every two years. With my nine methods and calculations, it can be used as a metric for management performance.With a 12 month rolling metric any change in slope is significant because a current month replaces a past year month. Any change represents a change in the month’s activity rather than waiting for YTD to get to the 4th quarter.
- Are the net assets improving?
- Is the cash flow better?
- What impact does that have on the market value method?
If the net cash flow is increasing, the statistically projected method will show a rise. I discuss these nine valuation concepts in my book. “Business Valuation Principles Made Easy with How to Increase Value Financially.”
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Dale Richards Valuation Optimization Presentation with Dashboards was John’s Favorite. John Martin, Ohio gained many insights from the 3.5-hour presentation but will implement graphical dashboards first. He learned key business concepts from Dale Richards’ presentation on Business Valuation Principles – How to Increase Your Business Value, Financially, Operational and Strategically. May
ABOUT DALE S. RICHARDS:
Dale S. Richards specializes in management, marketing, operation optimization & business valuation consulting and is a 30+ year turnaround expert. He has implemented success concepts into results in 150+ companies. Dale is a Certified Valuation Analyst (CVA) with NACVA, Eight-Year Vistage Chair & International Speaker.
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