{"id":56188,"date":"2023-01-25T08:00:45","date_gmt":"2023-01-25T13:00:45","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=56188"},"modified":"2023-01-25T14:16:19","modified_gmt":"2023-01-25T19:16:19","slug":"looking-back-measuring-company-success","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/looking-back-measuring-company-success\/","title":{"rendered":"Looking Back: Measuring Company Success"},"content":{"rendered":"

When trying to evaluate \u201csuccess,\u201d there are a million different key performance indicators (KPIs), stats, and figures that companies can use as yardsticks. It\u2019s easy to focus on pretty numbers that mask hard truths, or view data in isolation so that things look great with a small sample size but are trending downwards on a longer scale.<\/p>\n

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With that in mind, we want to look at some reliable touchstones that companies can use to see how well they met their 2022 goals, and how well-positioned they are for success going forward.<\/p>\n

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The areas we\u2019re going to focus on include:<\/p>\n

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  1. Financial performance<\/li>\n
  2. Customer and employee satisfaction<\/li>\n
  3. Market share<\/li>\n
  4. Social responsibility<\/li>\n<\/ol>\n
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    \"Wood<\/a><\/p>\n

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    Financial performance<\/h2>\n

    Simply looking at your accounts and saying, \u201cWell, our income was higher than our expenses\u2014we\u2019re successful!\u201d would be a gross oversimplification. In some cases, extremely successful companies can even operate at a loss for several years.<\/p>\n

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    Nonetheless, finances are the obvious place to start. Because whatever else is going on, you need to be bringing in business and trending upwards. A solid recap of the year\u2019s success can be summarized in just two financial documents:<\/p>\n

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    1. Income statement<\/li>\n
    2. Balance sheet<\/li>\n<\/ol>\n
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      1. Income statement<\/strong><\/p>\n

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      What is an income statement?<\/strong> A report that shows a company’s revenues and expenses for a defined period of time.<\/p><\/blockquote>\n

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      While revenue statistics can be abused (e.g. masking a huge loss by citing record revenue), they are extremely helpful when used correctly. Revenue is a key measure of a business’s performance, as it indicates the demand for the products or services that the business offers.<\/p>\n

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      The income statement is used to calculate a company\u2019s net profit for a given period. Since profit is the ultimate measure of operational success, it\u2019s an extremely important metric.<\/p>\n

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      Companies can also use the income statement to identify avenues for increased profit. For example, by finding and eliminating unnecessary costs<\/a>.<\/p>\n

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      2. Balance sheet<\/strong><\/p>\n

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      What is a balance sheet?<\/strong> This report shows a company’s financial position at a specific point in time, including its assets, liabilities, and equity.<\/p><\/blockquote>\n

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      The balance sheet effectively reveals the real, current financial health of a business. It assesses the company’s financial stability and solvency. It\u2019s rarely as straightforward as it sounds, but companies should consider:<\/p>\n

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