Measuring financial performance.

28 minutes

Being able to accurately measure past financial performance helps business owners/managers to assess performance and identify actions to improve future business performance. This video on ‘Measuring Financial Performance’ uses the numbers from a business’s Financial Statements to measure how efficiently a business is performing.

We’ll help you learn about:

  • key performance indicators,
  • how to measure those indicators, and
  • interpreting the story they tell about your business.

This video may be helpful for anyone who is:

  • considering starting a new business,
  • currently manages or owns a business, or
  • just wants to know more about measuring business financial performance.

It may be helpful to watch ‘Understanding Financial Statements’ as well.

The video covers:

  • the Financial Operating Cycle which is a model that examines how money flows and is used in a business. Everything from the owner’s initial investment to how profits may be used to sustain a business and generate a return for the owners.
  • the Working Capital Cycle, a model that illustrates working capital cash flows and demonstrates where cash may be getting caught up in a business.
  • Developing a scorecard for your business to quickly evaluate how it’s currently performing.

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Davidson Institute

Whether you’re a budding business, dedicated community group or curious individual, our financial education resources are designed to help you feel more money confident. Powered by Westpac, the Davidson Institute is here to help you work towards the financial future you want.

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