This website is using cookies to ensure you get the best experience possible on our website.
More info: Privacy & Cookies, Imprint
Key performance indicators (KPIs) play a crucial role in the analysis and management of companies. Here are some essential metrics that businesses use to assess their performance:
1. Revenue
Revenue indicates how much money a company generates through the sale of goods or services. It is a fundamental metric for financial performance.
2. Profit
Profit is the result when costs are subtracted from revenue. It provides insights into how profitable the company operates.
3. Liquidity
Liquidity indicates the extent to which a company can settle short-term liabilities. This includes metrics such as liquidity ratios 1 and 2.
4. Profitability
Profitability measures the earning power of a company. This includes metrics such as return on equity and return on total capital.
5. Indebtedness
Indebtedness shows the extent to which a company uses debt. This includes metrics such as the debt-to-equity ratio and equity ratio.
6. Employee Productivity
Employee productivity indicates how efficiently employees work. Metrics in this category include revenue per employee or profit per employee.
7. Inventory
Inventory metrics provide insights into the efficiency of inventory management and help avoid overstocking.
8. Customer Retention
Customer retention indicates how loyal customers are. Metrics in this category include customer retention rate and customer lifetime value.
It is crucial for businesses to select relevant metrics for their industry and regularly monitor them to improve their performance and make strategic decisions.