Figure 1 shows observations with a small standard deviation, and Figure 2 shows numbers with a large standard deviation.
Figure 3 below shows a “normal distribution,” sometimes called a bell curve for the shape of the graph. There are many cases where your data will tend to be around a central value with no bias to the left or right.
Counts: the number of observations or times of an occurrence
Benchmarking: setting standards or goals, and measuring your firm’s performance against either these predetermined numbers, numbers from similar firms in the feed and grain industry (perhaps from your state feed and grain association) or your company’s historical performance.
What kind of data?
Financial information comes from your financial statements — primarily your firm’s income statement and balance sheet. We will discuss a number of these below (using a hypothetical firm Forrestville Feed and Grain) — how to calculate them and their importance.
Liquidity Ratios — these are ratios calculated from your balance sheet and measure the liquidity of your company (your ability to meet short- and long-term debt obligations).