metric

(noun)

A measure for something; a means of deriving a quantitative measurement or approximation for otherwise qualitative phenomena.

Related Terms

Examples of metric in the following topics:

  • Drawbacks of Repurchasing Shares

    • Share repurchases often give an advantage to insiders and can be used to manipulate financial metrics.
    • Furthermore, share repurchases can be used to manipulate financial metrics.

  • Working Capital

    • Working capital is a financial metric which represents operating liquidity available to a business, organization and other entity.
    • Working capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization or other entity, including a governmental entity.

  • Benefits of Repurchasing Shares

    • Share repurchases are beneficial when the stock is undervalued, management needs to meet a financial metric, or there is a takeover threat.
    • In some instances, executive compensation may be tied to meeting certain earnings per share (EPS) metrics.
    • If management needs to boost the EPS of the company to meet the metric, s/he has two choices: raise earnings or reduce the number of shares.

  • Importance of Working Capital

    • Working capital (WC) is an important metric for all businesses, regardless of their size.
    • WC is an important metric, but is not the whole story of a company's financial health.

  • Trend Analysis

    • This often involves comparing the same metric historically, either by examining it in tables or charts.

  • Calculating Working Capital

    • Working capital (WC) is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entity.

  • Benchmarking

    • The most useful comparisons can be made when metrics definitions are common and consistent between compared units and over time.

  • Disadvantages of the NPV method

    • NPV is still commonly used, but firms will also use other metrics before making investment decisions.

  • Return on Total Assets

    • Finally, there is no metric to find a good or bad ROA.

  • Decision Criteria

    • As a management tool, this metric makes explicit the interrelatedness of decisions regarding inventories, accounts receivable and payable, and cash.