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nonfinancial measures used in various industries

nonfinancial measures used in various industries -...

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nonfinancial measures used in various industries Financial measures (measurement of dollars), such as variance analysis and return on investment  (ROI), are useful tools for evaluating performance . However, many companies now supplement these  financial measures with nonfinancial measures to better assess performance and anticipate future  results. For example, airlines, like  Delta American , and  United , use capacity utilization as an  important measure to understand and predict future performance. Newspaper publishers, such as the  New York Times  and the  Chicago Tribune , use circulation figures as another measure by which to  assess performance. Illustration  22-24  lists some key nonfinancial measures used in various 
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Unformatted text preview: industries. 22-24 Nonfinancial measures used in various industries Most companies recognize that both financial and nonfinancial measures can provide useful insights into what is happening in the company . As a result, many companies now use a broad-based measurement approach, called the balanced scorecard , to evaluate performance . The balanced scorecard incorporates financial and nonfinancial measures in an integrated system that links performance measurement and a company's strategic goals. Nearly 50% of the largest companies in the United States including Unilever , Chase , and Wal-Mart , are using the balanced scorecard approach....
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