Selection Criteria Checklist (Financial Perspective)

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GROWTH

  • Sales Revenue YOY Growth > 10%
  • Net Profit Margin YOY Growth > 10%
  • Cash Flow > 10%
  • Operating Cash Flow is growing YOY

FINANCIAL HEALTH

  • Net Profit Margin > 10%
  • Low debts or Net cash
  • Long Term Debt < 3 x Net Profit
  • Current Ratio > 1

OPERATING EFFICIENCY

  • ROA > 10%
  • ROE > 15%

# YOY = Year Over Year
# The company has to meet the criteria consistently YOY
# Please check the link on the right under Education & Tools for financial ratio explanation & definition

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