As you know, I am implementing a new performance metrics platform that will go live this fall. I have brought in Metrix Consulting, a firm that specializes in developing performance measures designed to capture relevant and actionable data for our businesses. Last week, I sent a survey to our managers asking them to provide me with examples of the types of questions that they think we need metrics to capture. A sampling of their responses is provided below:

$$ Example $1$:

I noticed that the interest coverage ratio has declined since last year, with a greater portion of our operating income being used to fund our interest payments. Which ratio should I use to understand the effect this may have on our profit margin?

$$ Example $2$:

Over the last few years, our return on assets has been relatively stable. However, our return on equity has declined over that same time period. Which ratio can I use to help me understand what may be driving this decline?

$$ Example $3$:

Corporate tax rates have increased this year. I know this will affect our net profit margin, but I would like to be able to capture this effect independent of the new bond issuance that took place earlier this year.

$$ Example $4$:

I have several business cases on my desk for approval that involve purchases of high$-$end capital equipment. For each of these, I would like a ratio that would help me understand how profitable these purchases are expected to be and what income I can expect them to generate.

$$ Example $5$:

I have created a new department within my division. The manager for the department has been given $$1$ million in capital to start, and my expectation is that the department will be profitable in two years. I need a way to measure its performance.

$$ Example $6$:

At a company$-$wide level, I would like to know what we are generating in terms of sales dollars relative to our asset base.

$$ Example $7$:

If I look at the company's income statement each year, I really only want to know one thing: How did we do from a bottom$-$line perspective relative to the top line? This measure, as a stand$-$alone number and in comparison to the prior year, lets me know how we are doing.