Often, our clients are interested in knowing how their financial results compare to industry standards of companies of similar size.
By performing and providing a benchmark analysis and measuring certain metrics, our clients receive valuable information that can assist management and ownership in identifying strengths and weaknessess. The analysis can generate ideas that may lead to change that can enhance financial performance. Performed over a period of time, benchmarking can also identify trends that can signify improvements or problems.
Company financials can typically be benchmarked against a number of different financial ratios. These ratios are then interpreted to determine the impact of the particular ratio, whether a strength or weakness, cause, related recommendations and how the business compares to its peers in a particular area.
Typically, our benchmarking and ratio analysis is performed in three critical areas: liquidity, profitability and leverage. In each of these areas, there are multiple ratios that are easy to calculate, and which provide meaningful analysis to our clients.
Benchmarking data is retrieved from the multiple industry-related databases that we can access. This allows us to utilize relevant peer comparisons based on size, revenue and geography.
Please contact any of our construction industry group representatives to learn how we deliver big thinking and personal focus utilizing benchmarking and ratio analysis.
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