Output Input ratios - performance trend measures

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HORIZONTAL ANALYSIS WITHIN A COMPANY

1. Our firm has invented an easy approach to evaluate impact due to strategic change in input.
2. It is a ratio between outputs divided by inputs.
3. The ratio indicates efficiency and performance of  any management activities.

GRAPHICAL APPROACH

1. It is graphical approach that make it easily understood where the input is at the x axis and output IS at the y axis.
2. A KPI each is calculated to show the before, after and standard.
3. It shows the value of improvement brought about by the change. 
4. Impact caused by volume could be eliminated.
5. Identify the change contributed by efficiency rather than change contributed by volume input.
6. This tool could be used and applied to all levels of jobs from management to the lower levels.

FINANCIAL DATA

1. The objectivity of the financial data are normally preferred for this purpose.
2. Excel templates and models has been designed to simplify the calculations.

DYNAMIC HORIZONTAL RATIO ANALYSIS

1. To better explain the change, a dynamic ratio analysis is preferred.

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copyright - input output analysis 2009