7 financial kpis everyone needs to know

12
Everyone Should Know The 7 Financi al s 7 Need-to-Know KPIs Financ e

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Explains the seven most critical financial key performance indicators (KPIs) that everyone should know and understand.

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Page 1: 7 Financial KPIs Everyone Needs To Know

Everyone Should Know

The 7 Financial s

7Need-to-Know

KPIsFinance

Page 2: 7 Financial KPIs Everyone Needs To Know

1Revenue growth rate

- measures whether you are increasing sales and therefore growing your

business.

© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.

Page 3: 7 Financial KPIs Everyone Needs To Know

2 Net profit

- the bottom line: deducting the money you

spent from the money you made.

© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.

Page 4: 7 Financial KPIs Everyone Needs To Know

3Net profit margin

- measures how much profit are we generating for each dollar we make

in sales.

© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.

Page 5: 7 Financial KPIs Everyone Needs To Know

4 Gross profit margin

- we subtract the costs of producing goods or

delivering services from the revenue.

© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.

Page 6: 7 Financial KPIs Everyone Needs To Know

5Operating profit margin

- removing the costs of operating the business

from the revenue.

© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.

Page 7: 7 Financial KPIs Everyone Needs To Know

6 Return on investment

- how much money do you get in return from

your investment.

© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.

Page 8: 7 Financial KPIs Everyone Needs To Know

7Cash conversion cycle

- how long does it take from spending money on

the business to getting money back.

© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.

Page 9: 7 Financial KPIs Everyone Needs To Know

For more on the topic, check out my LinkedIn Influencer blog:

© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.

BLOG

Page 12: 7 Financial KPIs Everyone Needs To Know

AboutThis overview was put together by Bernard Marr, Founder and CEO of the Advanced Performance Institute.

Bernard Mar is a bestselling business author, keynote speaker, strategic performance consultant, and analytics, KPI & Big Data guru. He helps companies with their big data strategies and trains teams to better leverage data in their companies.

Read Bernard’s blogs:

• LinkedIn Influencer Blog

Connect with Bernard on:

• LinkedIn

• Twitter

• Advanced Performance Institute

© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.