Performance Benchmarking Tool Result Page

The net profit margin is perhaps the most important measure of a company's overall profitability.

A higher profit margin means that your company is outperforming the average Canadian benchmark with more of every dollar in sales being kept as profit.

But are you maximizing your return?

Solutions to consider:

• Business & Operations Planning
• Financial Analysis & Modeling
• Strategy & Business Planning

To learn more, book a meeting with an advisor.

The net profit margin is perhaps the most important measure of a company's overall profitability.

A lower profit margin means that your company is lagging behind the average Canadian industry peer with fewer of every dollar in sales being retained as profit and lower shareholder returns.

Performance can be transformed and sustained with improvements in productivity, cost controls, strategy, supply chain, and performance management.

Solutions to consider:

• Performance Improvement
• Supply Chain Transformation
• Organizational Design Strategy & Business Planning

To learn more, book a meeting with an advisor.

To be a market leader is to ensure your business outperforms your competitors by emphasizing on those capabilities that set you apart them from the rest, aligning costs and capabilities always operate in tandem, and are structured for growth.

Return on Assets (ROA) measures how efficiently a company can generate profit from its assets, regardless of size. This is a pure measure of the efficiency of a company in generating returns from its assets without being affected by management financing decisions.

An ROA that rises over the benchmark indicates your company is doing a good job of increasing its profits with each investment dollar it spends vs. its Canadian industry peers.

But are you getting the best return on your invested capital?

Solutions to consider:

• Capital & Asset Management
• Revenue Optimization
• Supply Chain Transformation

To learn more, book a meeting with an advisor.

Return on Assets (ROA) measures how efficiently a company can squeeze profit from its assets, regardless of size. This is a pure measure of the efficiency of a company in generating returns from its assets without being affected by management financing decisions.

A falling or lower ROA indicates your company might have over-invested in assets that have failed to produce revenue growth, a sign that the company may be in trouble.

Solutions to consider:

• Capital & Asset Management
• Revenue Optimization
• Supply Chain Transformation
• Performance Improvement and Operational Excellence

To learn more, book a meeting with an advisor.

To be a market leader is to ensure your business outperforms your competitors by emphasizing on those capabilities that set you apart them from the rest, aligning costs and capabilities always operate in tandem, and are structured for growth.

ROE is considered a gauge of a corporation's profitability and efficiency in generating profits. The higher the ROE, the more efficient a company's management is at generating income and growth from its equity financing.

A good rule of thumb is to target an ROE that is equal to or just above the average for the company's sector – those in the same business. This means that your company is delivering.

However, is your ROE too far ahead of the industry? This could be because your profits are larger in comparison to a small equity account. Has your business experienced "inconsistent profits" in recent years? Or is your business saddled with excess debt?

Solutions to consider:

• Performance Improvement
• Profit Maximization
• Capital & Asset Management
• Working Capital Optimization
• Cash Flow Optimization

To learn more, book a meeting with an advisor.

ROE is considered a gauge of a corporation's profitability and efficiency in generating profits. The higher the ROE, the more efficient a company's management is at generating income and growth from its equity financing.

An ROE lower than or just below the average for the company's sector – those in the same business – is not considered optimal. This means that your company is not delivering.

But can you improve your metrics to "deliver consistent profits"? Or is your business saddled by "capital structure" including its "financial leverage"?

Solutions to consider:

• Performance Improvement
• Profit Maximization
• Capital & Asset Management
• Working Capital Optimization
• Cash Flow Optimization

To learn more, book a meeting with an advisor.

To be a market leader is to ensure your business outperforms your competitors by emphasizing on those capabilities that set you apart them from the rest, aligning costs and capabilities always operate in tandem, and are structured for growth.

Sales to equity is an efficiency ratio that measures a company’s ability to use shareholders’ capital to generate sales. It is an asset utilization metric used to understand the amount of equity needed to support a given level of revenue. The ratio provides a realistic picture of whether the company is generating adequate returns on the shareholder capital in the business.

A ratio higher than your industry indicates your company's ability to drive better outcomes than your Canadian peers. In most terms, the multi-year results of this metric highlights how you have been leveraging shareholder equity to drive sales growth.

However, are you generating the best return on your capital? Is your sales growth outpacing your capital requirements? Is your capital structure optimized?

Solutions to consider:

• Strategic Business Planning
• Revenue Optimization
• Capital & Asset Management
• Performance Improvement

To learn more, book a meeting with an advisor.

Sales to equity is an efficiency ratio that measures a company’s ability to use shareholders’ capital to generate sales. It is an asset utilization metric used to understand the amount of equity needed to support a given level of revenue. The ratio provides a realistic picture of whether the company is generating adequate returns on the shareholder capital in the business.

A lower-than-average ratio indicates that your company is generating less revenue for each dollar of invested equity as compared to your Canadian peers. This may highlight room for improvement across various areas from sales to operations.

Solutions to consider:

• Strategic Business Planning
• Revenue Optimization
• Capital & Asset Management
• Performance Improvement

To learn more, book a meeting with an advisor.

To be a market leader is to ensure your business outperforms your competitors by emphasizing on those capabilities that set you apart them from the rest, aligning costs and capabilities always operate in tandem, and are structured for growth.