Medicare | Nursing homework help
The three metrics I would use to analyze agency financial performance on a daily basis are revenue, expenses, and cash flow. Revenue is important to measure because it tells us how much money the agency is making on a daily basis. It also allows us to compare the current day’s performance against previous days or weeks in order to identify trends in sales or service income. Expenses are just as important as revenues; they show us how much money the agency is spending each day on operational costs such as staff wages, materials and supplies, rent/lease payments and other overhead costs. Monitoring these expenses helps ensure that we are not overspending our resources or budgeting too much for certain areas of our business.
Lastly, cash flow measures the net gain or loss of liquidity within an organization by monitoring inflow (income) versus outflow (expenses). Knowing what our cash flow position is each day allows us to make more informed decisions about future investments, expansion plans and other financial risk management strategies.
In conclusion, these three metrics provide insight into an organizations’s financial health which can then be used to better inform decision-making processes. Regularly tracking revenue, expenses and cash flow provides useful information about where additional resources may be needed in order for an organization achieve its desired goals and objectives while staying within budget constraints.