7 financial kpis everyone needs to know
DESCRIPTION
Explains the seven most critical financial key performance indicators (KPIs) that everyone should know and understand.TRANSCRIPT
Everyone Should Know
The 7 Financial s
7Need-to-Know
KPIsFinance
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.
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.
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.
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.
5Operating profit margin
- removing the costs of operating the business
from the revenue.
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
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.
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.
For more on the topic, check out my LinkedIn Influencer blog:
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
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© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
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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:
• Advanced Performance Institute
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.