TrendBoard Trend Analysis

TrendBoard is our tool for visualising trends in your performance data so you get an early warning of any problems more on the ScoreBoard trend analysis tool here

Key Business Indicators

12Faces is committed to helping you achieve Sustainable Business Success.
Sustainable means on-going, you need monitoring tools to check your business’s health.

Dictionary of Business Finance Terms

In TrendBoard and elsewhere in 12Faces, we refer to some of the financial analysis ratios that allow you to monitor your business.

You can read more on Business Analysis Ratios here

How to Select the Next Diagnostic Step

To learn how to use the 12Faces Diagnostic Process to best advantage, click More Info.

Success Group: Shows trends factors determining your Sustainable Business Success

Click on any adverse trend for more information

  • Falling Revenue: Revenue is the life blood of a business.  Any fall is usually a concern.
  • Falling Gross Profit:  GP is Revenue minus the Cost of Goods Sold which are the direct cost of producing items for sale.  COGS does not include permanent labour.
  • Falling Operating Profit: Operating Profit is Gross Profit minus Overhead Costs. Nobody likes a falling Operating profit. Find solutions.

Efficiency Ratio Group: Shows changes in operating efficiency

Click on any adverse trend for more information
Efficiency Ratio will help you track down why your business results might be falling. They can also help explain adverse trends in the “Success” Group.

Cash Conversion Cycle Group: Cashflow is the heartbeat of a business

Click on any adverse trend for more information. 

NOTE that this group relies on “Accrual Based Accounting” to be most accurate. If you are not doing this, treat the results with caution as they will be indicative only.

  • Cashflow and Cash Conversion:
    • Days AP/AR Outstanding:  ideally Accounts Receivable (AR) is larger than Accounts Payable (AP) indicating you are paying debts slower than people are paying you
  • Inventory Related:
    • Days Inventory Outstanding is how many days of inventory you are holding at your present sales rate. Less is better generally.

Sustainability Group: A Goal of 12Faces is Sustainable Business Success

This group has several measures on the sustainability of your business.

NOTE that this group relies on “Accrual Based Accounting” to be most accurate. If you are not doing this, treat the results with caution as they will be indicative only.

This covers how resilient your business is to unfavourable changes to your business and the economy in general.

TrendBoard is a Major Step Toward Your Business Sustainability

Congratulations, your use of the TrendBoardBoard means that you are heading in a positive direction within your business. Maintaining this vigilance on a monthly or quarterly basis is key to your business success. Still have questions? Contact 12Faces now.

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