Presentation on

Financial metrics
Business metrics
Performance metrics
Value chain analysis
Basic functions of HRM
 Financial metrics
• Financial metrics are the key techniques that
helps you to assess the financial statements.
• Financial statements
1. the balance sheet
2. the income statement
3. the cash flow
 Types of financial metrics
• Profit measures : net income,EBIT,gross profit
• Profitability ratio : return on investment
• Liquidity ratio : working capital ratio
• Some method:
• Pay back period, net present value,
profitability index
 Latest trends in this field
• Liquidity on the Balance Sheet
• Earnings Growth and Growth of Net Income
on the Income Statement
• Return on Assets
• Operating Cash Flow From the Cash Flow
Statement
 Business metrics
• A business process is an activity or set of activities
that will accomplish a specific organizational goal.

• A business metric is a quantifiable measure

businesses use to track, monitor and assess the
success or failure of various business processes.

• The main goal of measuring business metrics is to

track cost management
• Business metrics, also called KPIs (key performance
indicators) display a measurable value that shows the
progress of a company’s business goals.

• Sales revenue
• Net profit margin
• Gross margin
• Monthly recurring score
• Product/Startup Phase
• 1. Daily Active Users
• 2. Monthly Active Users
• 3. Net Revenue Retention
• 4. Net Promoter Score
• Growth Phase
• 5. Monthly MRR Growth
• 6. Monthly Account Growth Rate
• Efficiency Phase
• 7. Payback Period
• 8. Gross Margin
 Performance metric
• Measuring performance is a key to evaluating how
well employees are doing their work and companies
are meeting their targets.

• A performance metric gives hard data and yields

results that measure clearly defined quantities within
a range that allows for improvement.
Employee performance metric
 Basic functions of HR
1. Procurement
2. Development
3. Compensation
4. Integration
5. Maintenance
 Value chain analysis
• Value chain analysis is a strategy tool used to
analyze internal firm activities.

• Its goal is to recognize, which activities are the most

valuable to the firm and which ones could be
improved to provide competitive advantage.

• The Value Chain framework of Michael Porter is

a model that helps to analyze specific activities
through which firms can create value and
competitive advantage.
Thank you
Done By V S Devi Prasanna