What are financial metrics?

These metrics help stakeholders evaluate whether the business is meeting its financial objectives. Common financial metrics include revenue, net profit, gross margin, and cash flow, which collectively indicate how well a company is managing its resources. By monitoring financial metrics regularly, businesses can identify areas for improvement, mitigate risks, and develop strategies for sustainable growth.

Key financial metrics for a business include revenue, net profit margin, operating cash flow, and working capital.

• Revenue: The total income a company generates, reflecting its ability to attract customers and drive sales.
• Net profit margin: Measures how much of the revenue remains as profit after covering all expenses, indicating overall profitability.
• Operating cash flow: Shows whether a company can generate sufficient cash to sustain day-to-day operations, highlighting liquidity and financial stability.
• Working capital: A measure of a company's available operating liquidity to fund day-to-day operations.

Monitoring these metrics helps businesses understand their financial standing, make informed decisions, and align their strategies with long-term goals.

Examples of financial performance metrics include return on investment (ROI), earnings before interest, taxes, depreciation, amortization (EBITDA), and current ratio.

• ROI: Assesses the efficiency of an investment by comparing the profit earned to the investment cost.
• EBITDA: A measure of operational performance, excluding the effects of financing and accounting decisions.
• Current ratio: Evaluates a company's short-term liquidity by comparing its current assets to current liabilities.

Each of these metrics gives stakeholders unique insights into a company's financial performance to assist them in assessing operational efficiency, profitability, and financial health.

Enji analyzes data from across a project's activities to provide real-time updates and accurate projections on the project's financial performance. Through transparent reporting, leaders can see their business in numbers to improve planning and boost relationships with clients. Features include:

See employee value based on the time spent on tasks and projects and predict future costs with an understanding of the resources required for any feature and project.

Drive growth with a detailed breakdown of project profitability to identify costs per hour, per feature, and per project for strategic planning.

Know the value each employee brings to a project and business through their costs and profits per project and task. 

These features make it easy to evaluate financial performance and adjust workflows and other processes to improve the metrics as well. Enji helps leaders make strategic budgeting and pricing decisions without guesswork.