You can then focus on learning how to do things differently- and better. Benchmarking helps to provide the evidence needed to justify the tasks to be undertaken. A systematic method that points to critical areas for improvement. Benchmarking Parameters Ratios Liquidity Ratios are measures of quality and adequacy of current assets to meet current obligations. Debt Ratio is a measure of long-term viability.
Coverage is a measure of the ability to service debt.
Leverage is a measure of vulnerability. Sales Ratios are measures of management's ability to convert assets into revenues. Profitability Ratios are measures of management's ability to produce profits by generating sales and controlling costs. Indices Modernization Index is a measure of asset preservation. Risk Index combines selected financial ratios and is a measure of comparative vulnerability.