52 Weeks of FOS
Benchmarking – Week #22 of The Financial Operating System®
Benchmarking is the practice of comparing business performance against industry peers. It provides insights into strengt …
52 Weeks of FOS
52 Weeks of FOS
Return on Invested Capital – Week #21 of The Financial Operating System®
In previous weeks we have focused mostly on income statement profit margin metrics. This week we focus on a different ki …
52 Weeks of FOS
Administrative Labor Value Multiple (ALVM) – Week #20 of The Financial Operating System®
Prior notes focused on Direct Labor Value Multiple (DLVM) as a key driver of gross profit. Another essential metric is A …
52 Weeks of FOS
Marketing and Sales Return on Investment – Week #19 of The Financial Operating System®
Marketing and Sales Return on Investment (ROI) is essential for evaluating how effectively a business converts marketing …
52 Weeks of FOS
Lifetime Customer Value – Week #18 of The Financial Operating System®
Lifetime Customer Value (LCV) measures the total financial contribution of a customer throughout their relationship with …
52 Weeks of FOS
Using Labor Value Multiple to Price Projects – Week #17 of The Financial Operating System®
Last week, we looked at Labor Value Multiple (LVM) as a key metric for labor productivity and market value perception. T …
52 Weeks of FOS
Direct Labor Value Multiple Week #16 of The Financial Operating System®
Last week we reviewed Labor-Loaded Gross Profit. This week we review the Direct Labor Value Multiple (DLVM), which is a …
52 Weeks of FOS
Labor-Loaded Gross Profit – Week #15 of The Financial Operating System®
As we drill into specific metrics, one that is critical to understand is Labor-Loaded Gross Profit (LLGP). It is a cruci …
52 Weeks of FOS
Capital Investment Metrics – Week #14 of The Financial Operating System®
Most people look at profit margins on the income statement when assessing profitability. Equally important, however, is …