Introduction to SteelMetrics.

1. SteeleMetrics
Lexington, Kentucky
859-229-4238 859-268-8169 doug@steelemetrics.com

2. The Service …
Management assistance in
identifying, tailoring, quantifying, and
monitoring key financial performance
metrics for your company and key
employees on a monthly or quarterly
basis.
©dksteele

3. The Service …
“Accounting … the
language of business”
©dksteele

4. Your Accounting Audience …
1. Your shareholders
2. Your management team
3. Your bank
4. Your key vendors
5. Your employees
6. Your strategic partners
©dksteele

5. The Fundamentals …
• Establish Sound Goals & Objectives
• Measure Performance vs. Goals &
Objectives
• Evaluate Marketing
• Define Markets & Measure Share
• Key Manager Performance
• Financial Projections
©dksteele

6. Financial Variables …
• Profitability
• Liquidity
• Activity
• Leverage
• Industry Metrics
• Staff Performance
©dksteele

7. Profitability …
• Sales Growth Trend • Return on Sales
• Gross Profit Trend • Return on Assets
• Gross Margin Trend • Return on Investment
• Operating Expense • Return on Equity
Trend
• Operating Margin • Turn & Earn Analysis
• Net Income Trend
• Peer Comparisons
©dksteele

8. Liquidity …
• Working Capital
• Current Ratio
• Quick Ratio
• Cash Flow
©dksteele

9. Financial Activity …
• Asset Turnover
• Inventory Turnover
• Average Carry Period
• Receivable Turnover
• Average Collection Period
• Trading Cycle
• Trading Assets to Sales
©dksteele

10. Financial Leverage …
• Total Leverage
• Funded Leverage
• Leverage Less Real Estate
• Fixed to Worth
©dksteele

11. Benefits …
• Awareness of financial characteristics, strengths
& weaknesses
• Heading off problems & surprises
• Create performance objectives for key managers
• Managers become more comfortable & confident
with financial matters.
• Improve relationships with bankers, vendors and
strategic partners
©dksteele

12. Doug’s Background …
• Bellarmine honor grad in business & economics
• FNB Louisville. Citibank, J. Walter Thompson
• CEO private 3 state distributor - $27M peak sales
• Director private 11 state manufacturer - $31M peak sales
• Seminar : “Finance 101” – Commerce Lexington
• Seminar: “Basic Finance for the Non-Financial
Entrepreneur” – UK Gatton School
• Financial Analyst, UK Lexington ICC
• Chairman Commerce Lexington (1996)
©dksteele

13. SteeleMetrics
Lexington, Kentucky
Douglas K. Steele
“measuring $$$ performance”
859-229-4238 859-268-8169 doug@steelemetrics.com