Definition for : Benchmark
A benchmark is a very good level of performance achieved by players in the sector and used by less well-Performing players as a target to achieve, in an effort to improve their own performances. As part of the implementation of best practice procedures, groups may develop a Benchmarking policy within their different geographical divisions. Benchmarks are often used as efficiency ratios: Margin on Sales, Profitability, Sales turnover compared with Capital employed, Sales by sqm, Sales by employee, etc.
(See Chapter 8 How to perform a financial analysis of the Vernimmen)
To know more about it, look at what we have already written on this subject