Capstone Experience (Business Metrics) 2 Assignment

Capstone Experience (Business Metrics) 2 - Assignment ExampleCurrent balance helps in calculating the firms ability to pay its short-term liabilities. It is calculated by dividing the current liabilities with the current assets (Mowen, Hansen, & Heitger, 2011).Using the on time saving indicator to predict stock-out helps in measuring the operational efficiency of the business unit (Bidgoli, 2010). This follows from the derivation of information that ensures that the unit maintains sufficient stock for its operations. The gross operational profit per available style measures the competitiveness of the unit. This follows from the use of the rates to give measures that can maximize profitability of the unit. The current ratio seeks to measure the decision-making capacity. It gives insight into the preponderant financial situation, thus prompting appropriate actions to safeguard financial stability.The business unit seeks to maintain good relations with creditors. Therefore, the cu rrent ratio helps the business unit to preserve the trust of the organizations creditors, by showing when there is need to negotiate with them on payment. The gross operating profit per available room assists the business in seeking a competitive edge in its operations. More to these, the stock-out predictor aligns to the units strategy of promoting customer satisfaction (Stair & Reynolds,