Introduction
Metrics are the quantitative measures used for assessing, comparing, and tracking performance. These have been used in accounting, operations and performance analysis.
A group of metrics are used to build a dashboard that the management or analysts review on a periodical basis to maintain performance assessments, make business strategies and build opinions on them. Metrics come in a wide range of categories with industry standards and proprietary models usually supervising their use. However, individual cases and scenarios guide the use of suited metrics.
Understanding Metrics
- The dashboard prepared by the analysts or management where the metrics will be used is known as key performance indicators (KPIs).
- Metrics majorly rely on in the financial analysis of companies by both internal and external stakeholders.
- The stakeholders shall set the business goals first and, then, decide upon the best metrics to measure the performance of business goals.
- Some of the metrics that are used to measure the country’s economy are GDP, inflation, and unemployment rate.
