Integrated financial instrument panel

On the basis of basic data concerning tax rate, standard gearing, standard cost of capital, and other necessary starting data, one can quite easily determine an 'integrated financial instrument panel' and all can be done in a very easy way. 

Managers need this 'integrated financial instrument panel' in order to navigate the corporate ship, containing three basic measures at the least. The various basic measures or bottom lines may vary by company. However, all firms have to stay focused on the goals of cash (to pay its bills), profit (to pay dividends) and yield (some ratio that links profit to capital; a sufficient return on investment is necessary to be competitive with alternative investment opportunities) in order to have a big picture perspective of how the firm is operating. These are the financial goals that are generic to all organizations. 

If a company isn’t measuring and generating three healthy bottom lines (cash flow, profit and return) over the long term, it will not survive. Balance sheets at start and end of the period under consideration, P/L-account and cash flow statement form a unity, exemplified by an integral calculation. Financial data interrelate, like a jigsaw puzzle. In between the various quantities, no euro, no dime, no cent can disappear or appear just like that. Only true to nature financial reports offer the opportunity to make astute decisions about future strategies. 

If you do not know what the real profit is and hence the real yield is also unknown, you cannot know if you are doing the right things; the entire idea of 'effectiveness' is lost.   

The Way to Easy Profit Measurement