Cockpit
Statements
Rank Matters – It's the rank that counts
It's not the absolute level of financial performance that counts but rather how it ranks. It doesn't matter if your margin is 5%, 15% or 25%. What's important is how your margin compares with the competition.
A margin of 15% in Market A is better than a margin of 25% in Market B if the average in Market A is 10% and in Market B is 30%.
Why the rank matters
Only the rank – not the absolute value - of a financial metric communicates how strong performance was.
Ranking financial metrics eliminates the impact of external factors and of the stock price and makes metrics universally comparable.
The rank is at once the measurement and the interpretation and forms the basis of our indexed operating performance and our products.
Our products based on Operating Rank
Read more