• Manufacturing , Metrics and Ratios ,
• 15 Mar

Overall Equipment Effectiveness (OEE) is a utilization metric that looks at how productive manufacturing is during it’s scheduled operation. We look at quality, availability and performance as the 3 parts or categories of this metric. This is a great metric for gaining insights on improving manufacturing processes,. We can create benchmarks and determine the drivers

• Accounting , Finance , Metrics and Ratios ,
• 13 Jul

Contribution margin in it’s simplest form is total sales minus total variable costs but it can also be expressed as a ratio. This margin is what is left over to pay fixed costs and for capital. This is different than Gross Margin in that GM uses COGS instead of variable costs. COGS does not equal

• Economics , Finance , Metrics and Ratios ,
• 07 Jul

The Treynor Ratio is a reward to volatility metric. It is named after the economist Jack Treynor. It’s a performance measure that determines the additional return generated for each unit of  systemic risk in a portfolio. Treynor Ratio     where Portfolio Return Risk-Free Rate Beta of the Portfolio     Portfolio Return This is

• Economics , Finance , Metrics and Ratios ,
• 15 Jun

The Sharpe ratio is a risk vs return metric. The economist William F. Sharpe built this formula in 1966. He would later receive a Nobel Prize for his work on CAPM. The higher the number the better here for this ratio. Remember to keep the periods consistent when making comparisons.  A typical period is monthly

• Economics , Finance , Metrics and Ratios ,
• 03 Jun

  The Zeta Model helps us determine if a public company will declare bankruptcy in the next 2 years.   It was first published in 1968 by NYU Finance Professor Edward L. Altman.  This model assigns a score based on various weighted metrics. These metrics combine balance sheet and income statement items to look at the

• Metrics and Ratios , Project Management ,
• 14 Apr

Earned value (EV) is simple formula that measures the progress of the project as a dollar value. It shows us the value of the project to date and is part of the Earned Value Management Methodology. EVM is an objective and systematic way for measuring performance and progress of projects. As a business manager articles

• Metrics and Ratios , Project Management ,
• 12 Apr

Schedule Variance is an Earned Value Management metric that tells us if a project is behind, on, or ahead of schedule. We will go over the traditional way of calculating it and then an alternate way of calculating this metric. The result of this formula is a dollar amount. This is confusing because we are

• Metrics and Ratios , Project Management ,
• 11 Apr

Planned Value (PV) is a component of Earned Value Management. EVM is an objective and systematic project management methodology for measuring performance and progress of projects. Planned Value is one of the metrics within this methodology. Another name is the Budgeted Cost of Work Scheduled (BCWS). PV is the value of completed work thus far. 

• Metrics and Ratios , Project Management ,
• 10 Apr

Cost Variance (CV) helps us understand if we are over, under, or on budget for projects. We use this along with the schedule variance to get an idea of how the project is going. Making good estimations and forecasts about a project is a good way to make sure that Cost Variance does not get

• Finance , Higher Level Management , Metrics and Ratios , SaaS ,
• 24 Mar

Committed Monthly Recurring Revenue is a metric that we use in forecasting recurring revenue in future periods. You may also hear CMRR  called Contracted Monthly Recurring Revenue.  CMRR gives you an idea of future inflows and outflows of Monthly Recurring Revenue which is important when managing a subscription based business model.  We build upon the