Measuring Success: KPIs, Ratio Analysis, and Triple Bottom Line

This report explores different parameters for measuring company success, including KPIs, ratio analysis, and the triple bottom line. It focuses on the case study of Land Securities (LS) and highlights the importance of evaluating financial performance and sustainability. The report provides insights into how LS can improve its financial ratios and implement strategic approaches for sustainable growth.

MEASURING SUCCESS

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................3
OBJECTIVE OF REPORT:........................................................................................................................3
MAIN BODY..............................................................................................................................................3
Triple Bottom Line..................................................................................................................................3
Ratio analysis..........................................................................................................................................4
KPIs.........................................................................................................................................................7
CRS pyramid...........................................................................................................................................8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
Measuring success refers to analyzing the performance of company in order to evaluate
its current position. In modern scenario it has become essential for business to determine success
for getting knowledge regarding improvements areas to attain competitiveness. The selected
company in present report is Land Securities (LS) which offers offices, retail and specialist
services by being a property company. The present report will focus on showing different
parameters for measuring company’s success. It will include KPI, Triple bottom line, ratio
analysis, CRS, balance scorecard and competitor analysis.
OBJECTIVE OF REPORT:
The aim of this case study is to evaluate the performance indicator by utilizing different
modes so that accurate outcome can be derived. It will help LS to accomplish its business
objective by analyzing lacking areas which influences success. Current report will focus on each
indicator for assessing every perspective of stakeholders for firm’s success.
MAIN BODY
Triple Bottom Line
To evaluate broader prospect for making significant contribution in identifying
organizations performance it is widely utilized. Land securities can this factor into action for
measuring its company’s success from the shareholders perspective. Triple Bottom Line (TBL)
is an accounting structure for determining three areas progress which involves financial, social &
environmental (Janjua, Sarker, and Biswas, 2020). In addition this, level of LS commitment
towards fulfilling social and corporate responsibilities can be identified by implementing TBL
regarding business structure. Three elements that are involved in this specific methodology are
people, planet and profits. In addition to this, stakeholders can get better understanding about
company business practices by evaluating in terms of accomplishing responsibilities towards
environment and people for earning higher profits margins. In absence of concentration on this
elements organization any get negatively impacted.

The mentioned bottom lines for measuring LS success are profit which gives focus on
earning efficiency of business. Land securities history in attaining social responsibility can be
understand by its efforts put for creating value for stakeholders (Pan, Sinha and Chen, 2021). It
results in influencing all stakeholders in positive manner.
Land Securities also play role in affecting company's success by making proper
adherence to environmental practices. There are various challenges that LS faces while applying
triple bottom line as qualitative measures becomes difficult to measure for understanding
shareholders and other stakeholders’ perspective. To derive sustainability by giving emphasis on
these Ps is main outcome that business gets through implementation of TBL (Mansour and et.al.,
2020). Social welfare and environmental damage provides framework for evaluating both
profitable and non monetary dimensions (Ahmed and Sarkar, 2019.). LS can use this to secure
stakeholders participation & input in designing the TBL framework. Increased revenue,
productivity and reduce waste, energy, strategic operational risks are some benefits that can be
provided to interested people by implementing this form of measurement indicator.
This resource company to understand its foremost responsibility is to accomplish
objectives of shareholder's (Neri and et.al., 2021). LS as being a property business need to give
more preference in accomplishing its role for safeguarding environment factors. With respect to
this, it has also taken initiative to make assurance regarding compliance with guidelines
(Hammer and Pivo, 2017). Land securities have recognized importance of conducting green
practices which favorably affect its stakeholders.
Ratio analysis
Operating profit ratio
Particulars Formula 2019 2020
Operating profit 40 690
Revenue 757 741
Operating profit ratio Operating profit/
Revenue*100
5.2 93.11

From the above calculation it can be interrelated that company operating profit ratio of
LS in 2019 is less than 10% which has increased in next year to 93.1% that shows improvement.
It is usually good sign of progress for stakeholders’ (McCosker, 2021).
Net Loss ratio
Particulars Formula 2019 2020
Net loss 119 832
Revenue 757 741
Net loss ratio Net loss/
Revenue*100
(0.157) (112.2)
It is in year 2019 and 2020 are 0.157 & 112.2 in negative figures that is adverse progress
of land Securities and indicates need for improvement. The stakeholders like shareholders,
customers, lenders can get negatively impacted by this form of figures (Easton and et.al., 2018).
It can be improved by Ls by taking effective measures such as reducing irrelevant expenses, etc.
stakeholders expects from company to use its resources in efficient pattern in turn it can
generate more profits from sales.
Quick ratio
Particulars Formula 2019 2020
Liquid assets 451 1778
Current liabilities 1,225 1,249
Quick ratio Liquid assets/ Current
liabilities
0.36 1.42
This is considered to be an indicator of LS ability to pay its short term obligations by
maintaining sustainable liquidate position. An ideal ratio is 1 which says that company have
enough equivalent cash for paying its debt, the present firm has 0.36 & 1.42 time quick ratio in
2018 & 2019 respectively. In addition to this, it is growing from previous year which can
positively affect decision making procedure of stakeholders.
Current ratio

Particulars Formula 2019 2020
Current assets 524 1,859
Current liabilities 1,225 1,249
Current ratio Current assets/
Current liabilities
0.42 1.48
Various analysts, customers, suppliers, shareholders, lenders and other parties keep
interest in knowing current ratio of company. The particular ratio computed in present report for
LS in 2019 is 0.42 and 2020 has 1.18 times. Land securities has improved its past performance
by taking corrective measure which reflected by its upward movement of efficiency of managing
current assets. The company can attract investors through utilizing this specific ratio.
Trade receivable turnover ratio
Particulars Formula 2019 2020
Sales 757 741
Trade receivable 437 433
Trade receivable
turnover ratio
Sales/ Trade
receivable
1.73 1.71
In 2019 and 2020 Land Security has 1.73 and 1.71 respectively. This is showing
decreasing trend as compared to earlier period. With respect to this, it can be interpreted that
company enjoys high customer quality as its increasing from previous year.
Price to Earnings ratio
Particulars Formula 2019 2020
Share price 915.40 665.10
Earnings per share (16.1) (112.4)
Price to earnings
ratio
Share price/ Earnings
per share
-56.85 -5.917

The price to earnings ratio is also need to be positive as this represents the firm earning
capacity from each share. With respect to this, the firm focuses on this part largely for getting
attention of stakeholders. Land securities has particular ratio in 20291 and 2020 -56.85 & -
5.917. it can be easily interpreted that modification in existing strategies are obtained for
maintain positive outcome
Debt to equity ratio
Particulars Formula 2019 2020
Debt 4,114 5,610
Shareholders’ equity 8,750 8,750
Debt to equity ratio Debt/ Shareholders
equity
0.47 0.64
It is represents the contribution of creditors & shareholders in capital employed by
business (Hosaka, 2019). Moreover it becomes crucial for organization to make it an effective
indicator for attracting customers. In 2019 & 2020 year debt to equity ratio is 0.47 and 0.64
respectively. The ideal margin for evaluating relationship between company’s debt & equity
shareholders is less than 2.
KPIs
Key performance indicators refer to a measuring tool that assist business in determining
firm’s longer term success (What is a KPI? 2021). It is considered to be one of the most
effective tool in order evaluate company’s financial, operational achievements, etc. stakeholders
are those who are interested in company performance as they have invested in operational
activities of business or may get influence from its failure. In addition to this, Land Security‘s
stakeholder can utilize this mode for filling their particular objectives. Customers, investors
lenders, financial institutions, competitors, etc are some of the stakeholder that keep eye on each
activity of business (Popa and et.al., 2021). From the perspective of investors it can be easily
understood that key performance indicator aid them to take strategic decisions regarding
investment. LS can perform well only if it has sufficient among of capital for carrying forward
operational activities. KPI can indicate shareholders to know its financial position. The main

motive of investing is to obtain higher return for accomplishing personal objectives in efficient
manner. Good KPI will make reflection of progress towards achieving desire results which can
positively influence investors to make decision in favor of LS. Objective of comparing options
with organization become possible by taking KPI into consideration.
From the perspective of lenders, creditors, debtors, suppliers Key performance indicator
would be beneficial for examining land Securities position. Efficiency of business decides the
extent of ability in achieving objectives regarding stakeholders (Beysenbaev and Dus, 2020).
Each person interested in enterprise want some details that can support or validate course of
action conducting. KPI is one of those measure that play contribution in representing LS
efficiency, quality, timeliness, governance, compliance, resource utilization & project
completing performance level. This gives insights to suppliers and lenders regarding land
security capability of managing its short term as well long obligations. In addition to this, it
contributes widely in obtaining conclusion that can aid them to take right decision (Ismaila and
et.al., 2021). Precise , clear and transparent data related to Land securities inputs, process, output,
outcome, project, give convenience to related interested party rod derive suitable results. With
respect to this, KPI of LS can be measured through different approaches such as risk, operation,
employee, project and strategic measures (Ge, 2018). These measures provide LS’s capability to
accomplish organizational as well personal objective. From the evaluation it has been identified
that Land security competes its corporate social responsibility by ensuring safeguard of
stakeholders. Keeping its working culture motivated by enhancing the productivity through
healthy & safe working scenarios (Popa and et.al., 2021). Key performance indication can
resource LS as well for improvising company’s business structure in achieving objectives of
organization & stakeholders.
CRS pyramid
This particular model provide assistance in making company reliable and responsible
towards stakeholders and public. The impact of LS corporate activities on economic,
environment and social can be known (Wang, 2021). Main purpose for establishing corporate
social responsibility is to enhance its positive contribution on society by boosting firms. For
improving its internal working procedure it is strategic approach for increasing moral of
employees (Huo and et.al., 2021). With help of this approach it can be evaluated that Land

Securities play crucial role in minimizing its pollution creating practices for reaching desire
outcomes.
There are four levels in this which provide clarity to business in identifying key
components in pyramid structure (Masoud, 2017). It comprises economic, legal, ethical and
philanthropic responsibilities. On the top philanthropic responsibility has given space which is
related with adherence to minimizing usage of non renewable resources. In step of this model is
an ethical responsibility which is considered with doing right practices for meeting business
goals. In addition to this, for avoiding non productive and negative impact from stakeholders
perspectives LS need to make sure in obeying the law regarding employment, tax, health &
safety, etc. this play crucial role in following all norms of legal practices (Jonek-Kowalska and
Zieliński, 2020). For conducting business practices in effective manner Land Securities to should
responsible in fulfilling its economic roles regarding long term sustainability. Economic terms
for meeting customers’ requirements by offering products at reasonable price (Talonen and et.al.,
2021). This particular approach can be taken into consideration by LS for valuing company’s
success which will lead firm to move towards right direction for attracting investors, customers,
suppliers, communities, etc.
CONCLUSION
From the above report it can be concluded that measuring success is important as
evaluates company’s competitiveness as compared to competitors. In addition to this, it can be
from understood the case study that LS can utilize KPI, CSR pyramid, ratio analysis and triple
bottom line. The present report has evaluated that company requires changes in terms of
financial ratios for having sustainable growth through support of stakeholders. It can be
recommended to Land Security to implement strategic approaches such as effective marketing &
research practices for getting insights regarding market trends. This will resource firm to obtain
smooth functioning of organization.

REFERENCES
Books and Journals
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Talonen, A. and et.al., 2021 Refining the Economic Dimension of Carroll's CSR Pyramid by
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Online
What is a KPI? 2021. Available through: < https://www.klipfolio.com/resources/articles/what-is-
a-key-performance-indicator#:~:text=Key%20Performance%20Indicator
%20(KPI)%20Definition,their%20success%20at%20reaching
%20targets.>