Preface
Acknowledgments
Chapter 1 Introduction
Chaper 2 Asset Utilization Measurements
Sales to Working Capital Ratio
Sales to Fixed Assets Ratio
Sales to Administrative Expenses Ratio
Sales to Equity Ratio
Sales per Person
Sales Backlog Ratio
Sales Returns to Gross Sales Ratio
Repairs and Maintenance Expense to Fixed Assets Ratio
Accumulated Depreciation to Fixed Assets Ratio
Capital to Labor Ratio
Fringe Benefits to Wages and Salaries Expense
Sales Expenses to Sales Ratio
Discretionary Cost Ratio
Interest Expense to Debt Ratio
Foreign Exchange Ratios
Overhead Rate
Goodwill to Assets Ratio
Overhead to Cost of Sales Ratio
Investment Turnover
Break-Even Point
Margin of Safety
Tax Rate Percentage
Chapter 3 Operating Performance Measurements
Operating Assets Ratio
Sales to Operating Income Ratio
Sales Margin
Gross Profit Percentage
Gross Profit Index
Investment Income Percentage
Operating Profit Percentage
Operating Leverage Ratio
Net Income Percentage
Core Operating Earnings
Profit per Customer Visit
Profit per Person
Core Growth Rate
Quality of Earnings Ratio
Chapter 4 Cash Flow Measurements
Cash Flow from Operations
Free Cash Flow
Cash Flow Return on Sales
Fixed Charge Coverage
Expense Coverage Days
Cash Flow Coverage Ratio
Cash Receipts to Billed Sales and Progress Payments
Cash to Current Assets Ratio
Cash Flow to Fixed Asset Requirements
Cash Flow Return on Assets
Cash to Working Capital Ratio
Cash Reinvestment Ratio
Cash to Current Liabilities Ratio
Cash Flow to Debt Ratio
REINVESTMENT Rate
Stock Price to Cash Flow Ratio
Dividend Payout Ratio
Chapter 5 Liquidity Measurements
Accounts Receivable Turnover
Average Receivable Collection Period
Days Delinquent Sales Outstanding
Days Sales in Receivables Index
Accounts Receivable Investment
Ending Receivable Balance
Inventory to Sales Ratio
Inventory Turnover
Inventory to Working Capital Ratio
Liquidity Index
Accounts Payable Days
Accounts Payable Turnover
Current Ratio
Quick Ratio
Cash Ratio
Sales to Current Assets Ratio
Working Capital Productivity
Days of Working Capital
Weighted Working Capital
Defensive Interval Ratio
Current Liability Ratio
Required Current Liabilities to Total Current Liabilities Ratio
Working Capital to Debt Ratio
Risky Asset Conversion Ratio
Noncurrent Assets to Noncurrent Liabilities Ratio
Short-term Debt to Long-term Debt Ratio
Altman's Z-Score Bankruptcy Prediction Formula
Chatper 6 Capital Structure and Solvency Measurements
Times Interest Earned
Cash Coverage Ratio
Debt Coverage Ratio
Asset Quality Index
Accruals to Assets Ratio
Times Preferred Dividend Earned
Debt to Equity Ratio
Funded Capital Ratio
Retained Earnings to Stockholders' Equity
Preferred Stock to Total Stockholders' Equity
Issued Shares to Authorized Shares
Chapter 7 Return on Investment Measurements
Net Worth
Book Value Per Share
Tangible Book Value
Return on Assets Employed
Return on Infrastructure Employed
Return on Operating Assets
Return on Equity Percentage
Return on Common Equity
Financial Leverage Index
Equity Growth Rate
Earnings per Share
Percentage Change in Earnings Per Share
Economic Value Added
EVA Momentum
Relative Value of Growth
Dividend Payout Ratio
Dividend Yield Ratio
Chapter 8 Market Performance Measurements
Insider Stock Buy-Sell Ratio
Institutional Capture Rate
Market Value Added
Enterprise Value/Earnings Ratio
Stock Options to Common Shares Ratio
Cost of Capital
Sales to Stock Price Ratio
Price/Earnings Ratio
Capitalization Rate
Chapter 9 Measurements for the Accounting/Finance Department
Purchase Discounts Taken to Total Discounts
Percentage of Payment Discounts Missed
Transactions Processed per Person
Transaction Error Rate
Average Time to Issue Invoices
Average Employee Expense Report Turnaround Time
Payroll Transaction Fees per Employee
Time to Produce Financial Statements
Percentage of Tax Filing Dates Missed
Proportion of Products Costed Prior to Release
Internal Audit Savings to Cost Percentage
Internal Audit Efficiency
Deduction Turnover
Bad Debt Percentage
Percent of Receivables over XX Days Old
Allowance Exhaustion Rate
Percentage Collected of Dollar Volume Assigned
Cash Collected Per Aging Bucket
Collection Effectiveness Index
Best Possible DSO
Partial Payment Agreement Percentage
Percent of Cash Applied on Day of Receipt
Auto Cash Hit Rate
Unmatched Receipts Exposure
Cost of Credit
Earnings Rate on Invested Funds
Brokerage Fee Percentage
Borrowing Base Usage Percentage
Chapter 10 Measurements for the Engineering Department
Bill of Material Accuracy
Labor Routing Accuracy
Idea Kill Rate
Percentage of New Products Introduced
Percentage of Sales from New Products
Percentage of New Parts Used in New Products
Percentage of Existing Parts Reused in New Products
Average Number of Distinct Products per Design Platform
Percentage of Products Reaching Market Before Competition
Return on Innovation Investment
Intangibility Index
Science Linkage Index
Ratio of Actual to Target Cost
Warranty Claims Percentage
Time from Design Inception to Production
Percentage of Floor Space Utilization
Chapter 11 Measurements for the Human Resources Department
Employee Turnover
Average Time to Hire
Late Personnel Requisitions Ratio
Sendouts Per Hire
Intern Hiring Percentage
Ratio of Support Staff to Total Staff
Employment Cost Effectiveness
Chapter 12 Measurements for the Logistics Department
Production Schedule Accuracy
Economic Order Quantity
Number of Orders to Place in a Period
Economic Production Run Size
Raw Material Inventory Turns
Raw Material Content
Finished Goods Inventory Turns
Obsolete Inventory Percentage
Percentage of Inventory XX Days Old
Percentage of Returnable Inventory
Excess Inventory Index
Inventory Accuracy
Percentage of Certified Suppliers
Electronic Data Interchange Supplier Percentage
Distribution Turnover
Supplier Fill Rate
On-Time Parts Delivery Percentage
Purchased Component Defect Rate
Incoming Components Correct Quantity Percentage
Percentage of Actual Payments Varying from Purchase Order Price
Percentage of Purchase Orders Issued below Minimum Dollar Level
Proportion of Corporate Credit Card Usage
Percentage of Receipts Authorized by Purchase Orders
Freight Audit Recovery Ratio
Picking Accuracy for Assembled Products
Order Fill Rate
Average Time to Ship
On-Time Delivery Percentage
Dock-to-Dock Time
Percentage of Products Damaged in Transit
Percentage of Sales through Distributors
Chapter 13 Measurements for the Production Department
Constraint Productivity
Takt Time
Constraint Rework Percentage
Constraint Schedule Attainment
Constraint Utilization
Operational Equipment Effectiveness
Degree of Unbalance
Throughput Effectiveness
Manufacturing Critical Path Time
Manufacturing Efficiency
Break-even Plant Capacity
Manufacturing Effectiveness
Productivity Index
Unit Output per Direct Labor Hour
Average Equipment Setup Time
Unscheduled Machine Downtime Percentage
Mean Time between Failures
Acceptable Product Completion Percentage
Work-in-Process Turnover
Work-in-Process to Standard Work-in-Process
Scrap Percentage
First-Time-Through Yield
Warranty Claims Percentage
Maintenance Expense to Fixed Assets Ratio
Indirect Expense Index
Reorder Point
On-Time Delivery Ratio
Chapter 14 Measurements for the Sales and Marketing Department
Market Share
Customer Turnover
Advertising Value Equivalency
Net Promoter Score
Browse to Buy Conversion Ratio
Recency
Direct Mail Effectiveness Ratio
Inbound Telemarketing Retention Ratio
Proportion of Completed Sales to Home Page Views
Quote to Close Ratio
Pull-Through Rate
Sales per Salesperson
Sales Productivity
Sales Effectiveness
Sales Trend Percentage by Product Line
Product Demand Elasticity
Days of Backlog
Chapter 15 Measurement Analysis with an Electronic Spreadsheet
Financial Statement Proportional Analysis
Financial Statement Ratio Analysis
Automated Ratio Result Analysis
Leverage Analysis
Trend Analysis
Forecasting
Cash Flow Analysis
Capital Asset Analysis
Compounding Analysis
Investment Analysis
Risk Analysis
Appendix: Measurement Summary
Glossary
About the Author
Index
