Financial Benchmarking Notes: Definitions & Explanations PDF | Download eBooks
Study Financial Benchmarking lecture notes PDF with total quality management definitions and explanation to study “What is Financial Benchmarking?”. Study financial benchmarking explanation with TQM terms to review total quality management course for online MBA programs.
Financial Benchmarking Definition:
Financial benchmarking is to perform financial analysis and to compare the results in an effort to assess your overall competitiveness.
Managing Quality: Integrating the Supply Chain by S. Thomas Foster
Financial Benchmarking Notes:
An important aspect of a firm's better performance is finance. If the financial metrics are good, the form is considered to be performing well. That is why companies try to compare their finances with other companies performing better financially. This enables the organization to stay competitive. Some of the financial measures involve debt to equity ratio, liquidity, profitability, repayment capacity, and financial efficiency etc. However, there is no need of direct contact between the initiator firm and the target firm to collect information for financial benchmarking. Many companies nowadays upload their annual reports online having all the information needed for financial benchmarking, which has made it easier for the initiator firm to collect data not only for the present year but for previous years as well.
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