Understanding Key Figures in Business Analysis

Introduction

Key figures in business analysis provide a quick overview of a company’s performance by establishing a relationship between two values. However, it’s crucial to consider various other aspects of the business for a comprehensive analysis.

Understanding Key Figures in Business Analysis

• Key figures in business analysis are additional numbers that provide a quick overview of a company’s performance.

• They are usually calculated using two values and a number, which help to establish a relationship between the two values.

• For example, if two entrepreneurs meet and one boasts a turnover of 100,000 euros while the other achieved 150,000 euros, the immediate assumption might be that the latter is doing better.

• However, it’s important to consider other factors such as the size of the business. If the first entrepreneur has a much smaller store compared to the second, the overall performance may vary.

• Key figures offer a snapshot of the business’s performance, but a comprehensive analysis should take into account various other aspects of the business.

• Understanding key figures and their implications is crucial for making informed business decisions and assessing overall performance.

Comparing Key Figures for Business Analysis

• When comparing the turnover of a business, it is important to consider the size of the store and the number of employees.

• For example, if one entrepreneur has a small store and a few employees, while another entrepreneur has a larger store and twice as many employees, the latter is likely to generate much more turnover due to the increased manpower.

• It’s essential to compare two values at a specific moment and over an entire period to understand the situation of the company.

• The current figure reflects the company’s situation at a particular moment, which can change in a short time span, while the area figure indicates the overall performance over a specific period, such as a week, month, or year.

Understanding Key Terms in Business Analysis

• Comparing different periods and companies in business analysis is essential for making informed decisions.

• The term ‘ft-1’ refers to full-time employment, usually involving 40 hours of work per week, which can be split among multiple employees.

• Another important term is ‘floor space,’ which refers to the area where customers interact with the products or services in a store.

• Analyzing budget performance and comparing it with the actual results is a crucial aspect of business analysis.

Calculation of Turnover per Square Meter

• To calculate the turnover per square meter of the store’s sales floor area, we use the example of a clothing store with a turnover of 495,000 euros and a sales area of 180 square meters.

• The store has 3.2 full-time employees, but tomorrow it will have five employees in total - two working full-time and three working 0.4 full-time jobs to cover busy times such as late evening or the weekend.

• To calculate the turnover per square meter, we divide the store’s turnover by the sales area in square meters. In this case, 495,000 euros turnover is divided by 180 square meters.

Analyzing Turnover and Full-Time Job Performance

• The turnover per square meter of the store is 2,750 euros, calculated by dividing the total turnover of 495,000 euros by 180.

• The turnover per full-time job is approximately 154,168.50 euros, derived by dividing the turnover of the store by the number of full-time equivalent employees (FTEs), which is 3.2.

• The turnover per active person is 99,000 euros, obtained by dividing the store’s turnover by the number of employed people, which is 5. This indicates the individual contribution of each employed person to the overall turnover.

• These key figures provide valuable insights into the store’s performance and can be used for comparison with other stores or different time periods.

Conclusion

Key figures in business analysis are essential for making informed decisions and assessing the overall performance of a company. They offer a snapshot of the business’s performance, but a comprehensive analysis should take into account various other aspects of the business to ensure informed decision-making.

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