Industry Benchmark Metrics
The metrics below are used to compare your forecast to industry benchmarks. The availability of benchmark data depends on the specific region and industry (sub)level. Check here if your desired industry data is available.
With BENCHMARKER you can use ALL available industry data, so you are not limited to just one industry and region.
Profitability
- Gross Profit Margin - revenue minus direct costs, as a percentage of revenue. A measure of how efficient the production of your product or service is > Higher is better;
- Operating Profit Margin - revenue minus direct costs, minus operating expenses, as a percentage of revenue. A measure of how profitable your core business is > Higher is better.
Efficiency
- Average salary - gross salary costs per FTE (full time equivalent) > Lower is usually better, unless you're attracting talent in a competitive labour market;
- Revenue per employee - revenue per FTE (full time equivalent), a measure of the productivity of your employees > Higher is better;
- Operating Profit per employee - operating profit per FTE (full time equivalent), a measure of the efficiency of your workforce and organization >
Higher is better.
Operating expenses
- Personnel - total personnel costs as a percentage of revenue > Lower is better;
- Housing - total housing costs as a percentage of revenue > Lower is better;
- Energy & Utilities - energy and utilities costs as a percentage of revenue > Lower is better;
- Marketing & Communication - marketing and communication costs as a percentage of revenue > Lower is better.
Working capital
- Inventory months - the number of months' worth of inventory that you keep in stock. The lower, the less working capital you need > Lower is better;
- Days to get paid - the number of days it takes to get paid for your sales. The lower, the less working capital you need > Lower is better;
- Days to pay - the number of days you can wait to pay for your costs to your suppliers. The higher, the less working capital you need > Higher is better.
Liquidity
- Current ratio - currents assets divided by current liabilities. A measure of the extent to which you can pay your current bills. Should be >1;
- Quick ratio - current assets minus inventory, divided by current liabilities. A measure of the extent to which you can pay your current bills quickly (with funds readily available). Should be >1.
Leverage
Leverage is the use of debt to increase the return on invested equity.
- Debt/Equity ratio - the relative proportion of shareholders' equity and debt used to finance the company's assets. A high ratio may indicate that the company is much resourced with (outside) borrowing as compared to funding from shareholders > Lower is better.