A guide to all ten metrics available in the Business Performance Report — what each one measures, why it matters, and how to use it in a client conversation.

The Business Performance Report offers ten metrics — five included by default, and five available to add from the sidebar. This article explains what each metric measures, why it matters, and how you might use it to start a conversation with your client.

Default metrics

These metrics appear in every report automatically.

Revenue Trend

What it shows: How your client's total revenue has moved across each of the financial years in the dataset.

Why it matters: Revenue trend is the starting point for almost any financial conversation. It shows whether the business is growing, stable, or contracting over time, and frames everything else in the report.

Revenue vs Cost of Goods Sold

What it shows: How the cost of producing or delivering the business's goods or services has moved relative to revenue.

Why it matters: Where a gap between revenue and cost of goods sold (COGS) is narrowing, margin is under pressure — even if top-line revenue is growing. This metric helps you identify that dynamic early.

Revenue vs Operating Expenses

What it shows: How the business's overhead and running costs compare to revenue over time.

Why it matters: Operating expenses that are growing faster than revenue reduce profitability even when sales are strong. This metric highlights whether the business is scaling efficiently.

Gross Profit Margin %

What it shows: The percentage of revenue remaining after the cost of goods sold is deducted — calculated for each financial year in the dataset.

Why it matters: Gross profit margin is a core indicator of commercial health. A declining margin may suggest pricing pressure, rising input costs, or a shift in the business's product or service mix.

Operating Profit Margin %

What it shows: The percentage of revenue remaining after both the cost of goods sold and operating expenses are deducted — calculated for each year in the dataset.

Why it matters: Operating profit margin shows how efficiently the business converts revenue into profit at the operating level, before interest and tax. It reflects both commercial performance and cost discipline.

Optional metrics

These metrics can be added from the right-hand sidebar.

Cash and Bank Balances

What it shows: The business's cash and bank balance at the end of each financial year.

Why it matters: Profitability does not always mean strong cash. This metric highlights periods where the business may have been profitable on paper but cash-constrained in practice.

Debtor & Creditor Balances

What it shows: The value of outstanding debtors (money owed to the business) and creditors (money the business owes) at the end of each financial year.

Why it matters: Rising debtor balances relative to revenue may indicate slow payment from customers. Rising creditor balances may suggest the business is stretching its supplier payment terms.

Debtor Days & Creditor Days

What it shows: How many days on average the business takes to collect payment from its customers (debtor days) and how many days it takes to pay its suppliers (creditor days).

Why it matters: These ratios are a practical measure of working capital management. An increase in debtor days can indicate collection problems; a decrease in creditor days may signal cash pressure.

Working Capital Trend

What it shows: The movement in the business's net working capital (current assets minus current liabilities) across the dataset period.

Why it matters: Working capital is the fuel that keeps a business running day to day. A declining working capital trend can be an early warning sign of liquidity risk, even in an otherwise profitable business.

Break-Even Point

What it shows: The estimated revenue level at which the business covers all of its fixed and variable costs — calculated for each year in the dataset.

Why it matters: Understanding break-even helps frame discussions about pricing, volume, and cost base. A rising break-even point means the business needs to generate more revenue just to stand still.

A note on data accuracy

All metrics are calculated from the nominal ledger data held in BrightAP. If the underlying ledger contains errors, mispostings, or incomplete financial periods, these will be reflected in the output. We recommend reviewing the trial balance before using the report in a client meeting.

The Business Performance Report does not include benchmarking against other businesses or industry averages. All analysis is based solely on your individual client's own historical data.