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Business return - benchmarking
Business return - benchmarking
Matt Fox avatar
Written by Matt Fox
Updated over a week ago

The Business Return metric is typically calculated as the return on equity (ROE) or return on capital employed (ROCE) within a given period. However,these metrics are generally not suitable for smaller businesses, who often strip their balance sheets.We have adapted the tradition metrics to make them more suitable for smaller firms. Essentially, Business Return represents the profitability and efficiency ofthe business, its skill in utilizing its financial resources and the return for the risk and effort put in by the business owners.

Business Return is a crucial metric for organizations as it provides insight into the overall financial performance and health of the business. It is a key indicator of how efficiently a firm is utilizing its capital and assets to generate profits.A higherBusiness Return signifies a more profitable and efficiently run business, indicating better management and operational effectiveness. This metric is particularly important for potential investors, stakeholders, and the business leadership as it provides a snapshot of the organization’s financial prowess and long-term sustainability.

A strategy to Improve Business Return is to Increase Profitability: Focus on strategies to enhance revenue and manage expenses effectively, increasing net income.

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