--- title: Shawn Identifies for Forbes Financial Metrics that Could Give False Picture of Business Health description: Forbes Business Council looks at 12 financial metrics that might give business owners a false picture of their company’s success. image: https://www.spinnakerconsultinggroup.com/hubfs/shutterstock_1569228607-2.jpg --- [![Spinnaker Consulting Logo](https://www.spinnakerconsultinggroup.com/hubfs/spinnaker-logo.svg "Spinnaker Consulting Logo")](https://spinnakerconsultinggroup.com) [tel:804.510.0768](tel:804.510.0768) Menu - [Culture](https://www.spinnakerconsultinggroup.com/culture) - [Work](https://www.spinnakerconsultinggroup.com/work) - [Differentiators](https://www.spinnakerconsultinggroup.com/differentiators) - [Insights](https://www.spinnakerconsultinggroup.com/insights) - [Experts](https://www.spinnakerconsultinggroup.com/experts) - [Contact Us](https://www.spinnakerconsultinggroup.com/contact) Customer Channels & Operations Management, Data & Analytics, Risk Management & Regulatory Compliance 1 minute read # Shawn Identifies for Forbes Financial Metrics that Could Give False Picture of Business Health Apr 21, 2021 Written by: [Shawn Sweeney](https://www.spinnakerconsultinggroup.com/expert/shawn-sweeney) - Share Post: - [mailto:?subject=Spinnaker%20Consulting:%20Shawn%20Identifies%20for%20Forbes%20Financial%20Metrics%20that%20Could%20Give%20False%20Picture%20of%20Business%20Health&body=Here%20are%20some%20insights%20from%20Spinnaker%20Consulting%20I%20think%20you%20should%20check%20out:%20https://www.spinnakerconsultinggroup.com/insights/blog/forbes_business_health_metrics](mailto:?subject=Spinnaker%20Consulting:%20Shawn%20Identifies%20for%20Forbes%20Financial%20Metrics%20that%20Could%20Give%20False%20Picture%20of%20Business%20Health&body=Here%20are%20some%20insights%20from%20Spinnaker%20Consulting%20I%20think%20you%20should%20check%20out:%20https://www.spinnakerconsultinggroup.com/insights/blog/forbes_business_health_metrics) - Growth-oriented business owners regularly review key metrics and performance indicators to gauge their company’s financial health. But in today’s data-rich environment, the real advantage comes when leaders and analysts are focused on the right metrics. In a recent Forbes Financial Council discussion, I pinpointed a tool that while widely used, and helpful, is limiting because of its backward-facing focus. Going a step further, I recommended a more [holistic metric](https://www.forbes.com/sites/forbesfinancecouncil/2021/02/24/12-financial-metrics-that-may-be-giving-you-a-false-picture-of-your-business-health/?sh=34e71ce74770) that not only factors for what has already occurred, but also helps business leaders plan for the future.    As an entrepreneur, I’m always looking down the road – anywhere from 6 months to 5 years - to position Spinnaker to seize the next big opportunity. That’s why I’m not a fan of focusing solely on your profit and loss indicators, which, by their very nature, are lagging metrics that give you a picture of where you’ve already been. While I typically start with grounded insights on my business’ past and current financial health, I tend to lean more heavily on metrics that help me to assess my growth capacity.  I’m a big fan of operating cycle time, which is the time between making a capital investment and receiving payment from the end user. In leading a growth-oriented business, I need real-time information so I can smartly decide my next move, while maintaining a healthy bottom line. Looking for other smart tips from the Forbes Finance Council Experts? Check out some [additional metrics which could fail to give you the accurate financial report card you want – and need – for your business](https://www.forbes.com/sites/forbesfinancecouncil/2021/02/24/12-financial-metrics-that-may-be-giving-you-a-false-picture-of-your-business-health/?sh=34e71ce74770). - Share This Post - [mailto:?subject=Spinnaker%20Consulting:%20Shawn%20Identifies%20for%20Forbes%20Financial%20Metrics%20that%20Could%20Give%20False%20Picture%20of%20Business%20Health&body=Here%20are%20some%20insights%20from%20Spinnaker%20Consulting%20I%20think%20you%20should%20check%20out:%20https://www.spinnakerconsultinggroup.com/insights/blog/forbes_business_health_metrics](mailto:?subject=Spinnaker%20Consulting:%20Shawn%20Identifies%20for%20Forbes%20Financial%20Metrics%20that%20Could%20Give%20False%20Picture%20of%20Business%20Health&body=Here%20are%20some%20insights%20from%20Spinnaker%20Consulting%20I%20think%20you%20should%20check%20out:%20https://www.spinnakerconsultinggroup.com/insights/blog/forbes_business_health_metrics) - ## Related Articles ### [AI or AIGT: Follow a Roadmap To Focus On AI “All In Good Time” Oct 10, 2018 AI — artificial intelligence — is all the rage in the world of business analytics. But, focusing on AIGT — all in good time — may serve your organization better, today and tomorrow. Developing and building an intentional analytics progression plan toward AI will not only help your organization now, it will make future jumps into AI and other emerging business analytics capabilities much easier. Data & Analytics 3 minute read](https://www.spinnakerconsultinggroup.com/insights/blog/business-analytics-ai-roadmap) ### [Shawn Advises Setting Boundaries to Protect Credit to be Ready for a Crisis Aug 30, 2021 The best credit management strategies are developed in good times and position you to weather the storm when you hit bad times. For many business owners, the pandemic served as a wake-up call to be more proactive in protecting their business credit. After all, good credit could be the difference between keeping your doors open and shutting them forever. Risk Management & Regulatory Compliance, Issue Management, Business Strategy 1 minute read](https://www.spinnakerconsultinggroup.com/insights/blog/forbes_protect_business_credit) ### [Shawn Advises on Smart Ways to Invest a Windfall in Forbes Finance Council Discussion Aug 4, 2021 An unexpected pot of money lands in your lap. Do you splurge on something exciting? Or spend the money in ways that will support your long-term goals? Customer Channels & Operations Management, Program Build Out, Business Strategy, Human Capital 1 minute read](https://www.spinnakerconsultinggroup.com/insights/blog/forbes_windfall) - Let's **Talk** - [804.510.0768](tel:804.510.0768) - [info@spinnakerconsultinggroup.com](mailto:info@spinnakerconsultinggroup.com) - [mailto:info@spinnakerconsultinggroup.com](mailto:info@spinnakerconsultinggroup.com) - #### Subscribe To Our Blog Like how we think? 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