Revenue Generation

Follow this video to understand and utilize the Revenue Generation widget on the main page of CFO Scoreboard:

The Revenue Generation section shows how effective your business is at using its assets to generate revenue.

There are two main ways we think about assets - your physical assets and your employees.

For example, if you are a manufacturing company, you probably had to invest in some manufacturing equipment. CFO Scoreboard shows you how much Revenue the business generated for each "dollar" of assets you have on your balance sheet. If that number is better this time period than the prior time period, we show a thumbs up.

Some businesses, such as service businesses, don't require a lot of physical assets. If a manufacturing company wants to increase revenue, they might have to buy more manufacturing equipment. If a services business wants to increase revenue, it might need to employ more people, so revenue per employee is an important relationship that we track. We also look at how much revenue you generate for each dollar of payroll.

Of course, viewing these metrics in isolation is not that useful. What's important is whether or not your business is improving over time. To see the trends, click the metric you are interested in, and CFO Scoreboard will show you a graph of how that relationship or ratio has performed over the past year or so.

At the top of this section there is a menu that lets you choose how these metrics are displayed. By default, we show you the metrics as ratios, or what we call “MBA Language”, because this is the way that these metrics are commonly taught at university business schools. However, you can also view these ratios in “Plain English”, which might be a bit easier to understand.

The Revenue Conversion Metrics widget shows how effective your business is at using its assets to generate revenue.

There are two main ways we think about assets - your physical assets and your employees.

For example, if you are a manufacturing company, you probably had to invest in some manufacturing equipment. CFO Scoreboard shows you how much Revenue the business generated for each "dollar" of assets you have on your balance sheet. If that number is better this time period than the prior time period, we show a thumbs up.

Some businesses, such as service businesses, don't require a lot of physical assets. If a manufacturing company wants to increase revenue, they might have to buy more manufacturing equipment. If a services business wants to increase revenue, it might need to employ more people, so revenue per employee is an important relationship that we track. We also look at how much revenue you generate for each dollar of payroll.

Of course, viewing these metrics in isolation is not that useful. What's important is whether or not your business is improving over time. To see the trends, click the metric you are interested in, and CFO Scoreboard will show you a graph of how that relationship or ratio has performed over the past year or so.

At the top of this section there is a menu that lets you choose how these metrics are displayed. By default, we show you the information in plain English, but you can view the same metrics as ratios if you prefer. These ratios are commonly taught in business schools, and if you prefer to see the metrics this way, you can change the setting to "MBA Language".