Metrics & Accountability
On a lazy october evening, I was watching the "Cramer mad money" a show in CNBC here in America. I do not like the mannerisms of Cramer and normally do not watch this show. This time, he talked about a topic that first caught my attention four years back- the Metrics. Proper metrics are the basis point of Accountability. Without accountability, there cannot be order in any system or one cannot enforce order in any system. I mention this because I adore how accountability is built into the governing system and soceity here in US.
The very first metric that caught my attention here is the "retail sales per sq.ft" for measuring how good a business a particular retailer is doing?
Every industrial sector has few important metrics. The companies with the best metric would be the best performing company in that sector. Some of the metrics mentioned by Cramer in this show are as follows
Cable C0mpanies (Comcast, optimum etc.)
enterprise value / no. of subscribers . enterprise value is basically the market value.
Hotel
avg revenue/ room
Airline companies (advised by him as something not to buy)
avg revenue/seat
Retailers / restaurants
samestore sales
Tech stock
gross margin/product sold - best gross margin stock. Eg. Microsoft, Intel has the highest gross margins.
The very first metric that caught my attention here is the "retail sales per sq.ft" for measuring how good a business a particular retailer is doing?
Every industrial sector has few important metrics. The companies with the best metric would be the best performing company in that sector. Some of the metrics mentioned by Cramer in this show are as follows
Cable C0mpanies (Comcast, optimum etc.)
enterprise value / no. of subscribers . enterprise value is basically the market value.
Hotel
avg revenue/ room
Airline companies (advised by him as something not to buy)
avg revenue/seat
Retailers / restaurants
samestore sales
Tech stock
gross margin/product sold - best gross margin stock. Eg. Microsoft, Intel has the highest gross margins.
1 Comments:
Great stuff Rajesh. But what about metrics for politicians!
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