What financial indicators are key in measuring business size?

Key financial indicators for measuring business size include revenue, net income, assets, market capitalisation, and number of employees.

Revenue, or sales, is the total amount of money a company brings in from its business activities before expenses are deducted. It's often the first figure you'll see on a company's income statement and is sometimes used as a proxy for business size. However, it's important to remember that a high revenue doesn't necessarily mean a company is profitable or financially healthy.

Net income, also known as net profit, is the amount of money a company has left after all expenses have been deducted from its revenue. This includes costs such as salaries, rent, and taxes. A company with a high net income is generally considered to be doing well, although this isn't always the case. For example, a company might have a high net income because it's sold off a large amount of assets, not because its core business is particularly profitable.

Assets are everything a company owns that has value. This includes physical items like buildings and machinery, as well as intangible items like patents and trademarks. The total value of a company's assets is often used as a measure of its size, especially in industries like manufacturing where physical assets are important.

Market capitalisation, or market cap, is the total value of all a company's shares of stock. It's calculated by multiplying the company's share price by the number of shares outstanding. Market cap is often used as a measure of a company's size because it reflects what investors think the company is worth.

Finally, the number of employees a company has can also be a measure of its size. While this isn't a financial indicator in the same way as revenue or net income, it can still give you a sense of how large a company is. For example, a company with thousands of employees is likely to be larger than one with just a few dozen.