Definition for : Benchmark

A benchmark is a very good level of performance achieved by players in the sector and used by less well-Performing players as a target to achieve, in an effort to improve their own performances. As part of the implementation of best practice procedures, groups may develop a Benchmarking policy within their different geographical divisions. Benchmarks are often used as efficiency ratios: Margin on Sales, Profitability, Sales turnover compared with Capital employed, Sales by sqm, Sales by employee, etc.

(See Chapter 8 How to perform a financial analysis of the Vernimmen)

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