Non-Financial Performance Data

Last updated Jun 12, 2023 Edit

• Business

• Financial ratios tend to be historic
• Financial ratios focus on measures that are more important to shareholders than business managers
• Financial data is not the best way of understanding how the business is performing in terms of key competitive performance

• Efficiency (unit costs)
• Labour productivity
• Capacity utilisation
• Break-even output
• Quality (reject rate)
• Quality (lead time)

• Labour turnover
• Labour productivity
• Unit labour costs
• Absenteeism rate
• Revenue per employee
• Staff retention rate
• Job satisfaction

• Market share
• Sales per employee
• Sales growth (volume)
• Customer retention rate
• Brand reputation and awareness

• Environmental performance
• Compliance regulation
• Health & safety record
• Social media reach

• Financial measures and non-financial measures are closely linked.
  • If you want to improve your operating profit margins, taking non-financial measures to improve employee satisfaction could aid in achieving this goal
  • Improved product quality may cost no extra money, but could allow the goods to be sold at a higher price and more quickly.

Business