Performance Measures

Performance Measures

Finverso Index Computer (2)

FINVERSO INDEX

Finverso measures the key financial results that really matter – “Killer Financial Indicators” – converting these into performance scores that accurately measures the financial health of any company. These combine into a singular financial performance score out of 100 (Finverso Index) that accurately depicts the actual financial performance of the company.

Cash Flow Tablet (2)

FREE CASH FLOW

Many a company has failed by persistently expending in excess of its free cash flow but now you can use Finverso to tell you the cash availability for discretionary expenditure such as dividends or CAPEX.

Having this knowledge allows you to consider:

  • The likelihood of the company continuing its core activities without needing to change its current mix of funding
  • Its ability to self-fund growth, and;
  • Provide returns to shareholders in the future

Finverso rewards free cash flows that are positive, cash gains and cash flow sustainability. These all form part of the Finverso Index.

Margin of Safety Computer

MARGIN OF SAFETY

How safe is your business to the loss of a key customer?

Our experience at Finverso is that a company’s business model is more secure the higher its margin of safety. We soon realised this risk measure should be translated into our valuation methodology.

Margin of safety measures the extent to which the business is exceeding break-even and tells you the level of safety of current profitability.

Return On Net Operating Assets Computer

RETURN ON NET OPERATING ASSETS

The accountants at Finverso have long wondered why investors pay close attention to their investment returns whilst investors in privately owned companies pay little or no attention. Shareholders looking to grow wealth cannot ignore returns.

Finverso automatically converts a conventional balance sheet or statement of financial position to quickly reveal the return on core operating assets.

Making privately owned companies more valuable

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Making Your Company More Valuable Diagnostic

Free Diagnostic - click here

Making Your Company More Valuable Diagnostic

Free Diagnostic - click here