7 financial kpis everyone needs to know

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.

2 Net profit

- the bottom line: deducting the money you

spent from the money you made.

3Net profit margin

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

in sales.

4 Gross profit margin

- we subtract the costs of producing goods or

delivering services from the revenue.

5Operating profit margin

- removing the costs of operating the business

from the revenue.

6 Return on investment

- how much money do you get in return from

your investment.

7Cash conversion cycle

- how long does it take from spending money on

the business to getting money back.

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

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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:

• LinkedIn

• Twitter

• Advanced Performance Institute

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http://www.ap-institute.com/

7 financial kpis everyone needs to know

bybernard marr

net profit margin measures

operating profit margin

gross profit margin

money doyou

money youspent

revenue growth rate

mylinkedin influencer

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