Migrating Financial Metrics

Financial reporting and analysis can sometimes seem static and inflexible. But in reality, the field does change and evolve – even if slowly.

For example, General Motors recently announced that it would no longer report monthly auto sales, an age-old financial metric in the auto industry. Saying the measure no longer tracks a meaningful aspect of the business, GM will instead report quarterly sales. And the trend may be quickening – Tesla, WalMart, Target, and other companies have also stopped tracking monthly sales.

Not everyone agrees with GM, and some are concerned that given the auto industry’s importance in the economy, the move may cloud the view of broader financial trends.

Are there metrics at your company or in your industry that may have outlived their usefulness?