Value Driver Finance
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Value Driver Finance: Understanding What Makes Your Business Tick
Value driver finance is a management approach that focuses on identifying and managing the key activities and factors that drive a company’s value. Instead of solely relying on lagging indicators like net profit, it emphasizes leading indicators, which are the underlying drivers that contribute to long-term, sustainable value creation. This allows businesses to proactively manage their performance and make strategic decisions that will positively impact their worth.