Business Analysis

Metrics Drill-down

How activity-level metrics connect to financial outcomes. Rooted in Return on Capital Employed — the metric Paul identified as the key measure of business performance. For the commercial frame, see the ROCE Strategy. Click nodes to expand.

New working-capital-health metrics from the ROCE strategy (GMROII, CCC, residual management, carrying cost, CLTV) are catalogued on the metrics inventory. This tree still focuses on the established ROCE decomposition — the new branches will fold in once the baseline is live.
Source
L0
Level 0 — The top-line financial outcome. Everything below feeds into this.
L1
Level 1 — Primary components of ROCE: operating profit (numerator) and capital employed (denominator).
L2
Level 2 — Divisional contributions and capital components you can manage.
L3
Level 3 — Operational metrics. The levers you can pull to move L2 numbers.
L4
Level 4 — Activity metrics. Day-to-day measurements that drive operational performance.
Tracked — measured in a system today with a known value.
Partial — data exists somewhere but not reported or joined up.
Gap — not tracked. Needs creating or connecting.
Click to expand any metric to reveal what drives it. Source division tags show where the metric originates.