Financial performance benchmarks

How are you performing? How are your peers performing? Need to instigate new policy?

Innovation and R&D benchmarks

In today’s business world both Innovation and Research and Development (R&D) are of key importance as the level of competition, production processes and methods are rapidly increasing. In recognition of this importance, the Innovation benchmark and the R&D benchmark have each been created to give a detailed insight into corporate spending throughout the world.

For example, since its creation in 1991 under the sponsorship of the then Department of Trade and Industry, the former UK Government's R&D Scoreboard was compiled for over two decades by the Bespoke Benchmarking team. The Scoreboard included the top 1000 companies investing in R&D in the UK and how they compared with the top 1000 Global companies. It was designed as a benchmarking tool for companies, investors and policy-makers alike. The Scoreboard was regarded as the leading source of information and analysis on the world's top R&D active companies, both in the UK and globally. This is demonstrated by the endorsement by many leading industry associations such as United Kingdom CBI, the British Chambers of Commerce, The R&D Society, The Royal Academy of Engineering and many more. Company annual reports are used to gather the data as the figures included have been independently attested by auditors. The benefits of using annual reports also include being able to capture the yearly cash spend (both expensed and capitalised) and being able to determine company funded R&D (net R&D after excluding any external R&D funding).

In addition to either Innovation or R&D there is a wealth of other financial data disclosed. This data includes:

  • key financial performance measures such as sales, employment data, market capitalisation, operating profits and value added;
  • growth statistics to judge company performance over a 5 year period;
  • market capitalisation;
  • broader investment data such as "Innovation + Capex" or "R&D + Capex";

The benchmarks are presented in a range of easy to read and informative formats including breakdowns by: ICB industry sector; country; region; ownership and listing status.

Value Added benchmarks

The Value Added Benchmark provides a measure of corporate wealth creation which is an indispensible tool for analysts, investors, investor relations, strategy planners and CEO's alike.

The wealth created by each company is measured as Value Added (VA), which is (sales less cost of bought-in goods and services). Rather than relying on individual companies providing a VA figure, we analyse each company's annual report to determine VA using our own unique formula. This standardised methodology ensures company, sector and country comparisons can be achieved. In addition to VA there is a wealth of other financial data disclosed. This data includes:

  • key financial performance measures such as sales, market capitalisation, operating profits and growth;
  • the dispositions of VA such as employee costs, cost of funds and amortisation;
  • productivity data such as VA per employee and a VA efficiency ratio of (VA over employee costs plus depreciation);
  • growth statistics over a 5 year period for VA, sales, employees and more;
  • detailed company information such as industry classification and contact address details.

The Benchmark is presented in a range of easy to read and informative formats including: by ICB industry sector; by Value Added; by country and; within listing status.  Even if you are not included in the top 800 UK or top 750 European companies within the Scoreboard the tools and methodology provided will allow you to compare yourself with competitors.

Since its creation in 2002 the Value Added Industry Benchmarking Scoreboard has been compiled by the Bespoke Benchmarking team and has been sponsored by the UK Department for Business Innovation & Skills.  The Scoreboard is regarded as an important tool in forming policy towards ensuring the United Kingdom is the best place in the world to run an innovative business or public service.  Due to the goal and information provided the Scoreboard was also endorsed by organisations such as the United Kingdom CBI and the British Chambers of Commerce.