Measuring and Controlling Devices (SIC 382X)

Understanding the Analysis:

• The table shows the industry median and 1st quartile values of key financial metrics managed by executives and followed by investors.
• Note: Variations between the median and 1st quartile values are explained in part by unique company factors like product mix.
• The table reports for a company with $1,000 million in revenue the gross 1st-Year Before-Tax Cash Flow Benefit of moving to the 1st quartile from the median. The benefit is scalable based on revenue size. For example, the benefit for a company with $500 million in revenue is half of reported benefit.
• The last column in the table reports the percentage change in After-Tax Long-Term Cash Flow if the movement to the 1st quartile is sustainable year-after-year.
• The graph shows the percentage effectiveness of the median compared to the 1st quartile. The yellow is the percentage effective and the green shows opportunity. For example, the 1st quartile’s % Cost of Goods Sold is 60% and the median’s is 70%, the percentage effectiveness is 86% (60% / 70%) or potential for improvement is 14% (100% - 14%). What is your company or your clients percentage effectiveness.
• Companies in the same industry often face similar business challenges and therefore the results from the Industry Analyzer can be used as an indicator of areas that likely offer the greatest benefits to your company or client. However, like all financial analysis, great care should be taken in interpretation of the results and development of an action plan.

Application Templates

• The analysis indicates that for the average company in the industry, that better management of 1) cost of goods sold and 2) selling, general and administrative expense provide the greatest opportunities to improve cash flow. However, potential also exists for assets like inventory and fixed assets.
• FinListics Solutions Application Templates provide a framework for quickly translating a solution's impact into financial measurements.
• A sampling of the Application Templates is available under the Knowledge Bar located on the right column of this page.