Performance Management

This category covers all aspects of performance management such as budgeting, forecasting, performance measure and performance evaluation.

What Are Average Total Assets and How to Calculate Them? [Including Uses, Benefits, and Limitations]

Average total assets show the operating efficiency of a business and can be used to compare net income in terms of assets. It is a commonly used financial metric with a few simple steps to calculate the figure. However, it does come with some limitations as it uses historical data. Let’s dive into the details […]

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What is Triple Bottom Line?

The triple bottom line (TBL) or 3BL is a framework that aims to bring the people and planet aspects along with the conventional one of profit. The TBL theory suggests that businesses must adopt better social and economic policies that bring benefits in all three aspects rather than focusing on profits only. Let us discuss

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Contribution Margin Vs Operating Margin: What Are the Differences?

Contribution margin and operating margins are both profitability measures. However, both these metrics provide different types of information to the business. Both these terms have certain similarities and some key differences. Let us discuss these concepts briefly. What is Contribution Margin? The contribution margin is total sales minus variable costs for a company. It can

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Lockup Days v Days Sales Outstanding (DSO) – What are the Differences?

Lockup days and days sales outstanding (DSO) figures depict the cash conversion of a business. Lockup days tell us how quickly a company turns its inventory into cash. The DSO figures show how efficiently a company collects its accounts receivable. Both figures are important efficiency and cash flow measurement metrics. Generally, the measures will depend

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Utilization Rate Vs Realization Rate – What are the Differences?

The utilization and realization rates important performance measurement metrics of an organization. Both metrics are widely used for professional service organizations. The utilization rate is a measure of internal efficiency and the realization rate is a measure of revenue recognition of an entity. There are no set rules to define an ideal level for both

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