Financial Metrics & KPIs: 10+ Visual Examples | Klipfolio (2024)

FAQs

Financial Metrics & KPIs: 10+ Visual Examples | Klipfolio? ›

“For us, KPIs tend to be goal-oriented, for example, having a KPI of how many leads we generate in a month. Metrics are the numbers that inform these goals, but not directly the goals themselves. For example, metrics we track are page views, SEO position, bounce rate, and similar.”

“For us, KPIs tend to be goal-oriented, for example, having a KPI of how many leads we generate in a month. Metrics are the numbers that inform these goals, but not directly the goals themselves. For example, metrics we track are page views, SEO position, bounce rate, and similar.”

Specific: A KPI should be a detailed, simple and clear description of what exactly you want to achieve. For example, “Improve customer satisfaction” is too broad. A better KPI is, “Improve customer satisfaction ratings by 10% by the end of Q3.”

The formula being Net Income ÷ Shareholder's Equity. Return on Assets looks at how effectively assets are used to generate profits. The formula for this KPI is Net Income ÷ Total Assets. The Book Value Ratio KPI looks at the value per share of a business.

Write a clear objective

This objective should align with your overall business goals and provide a roadmap for what you're trying to achieve. For example, if your business goal is to increase customer retention, your KPI objective could be "to reduce churn rate by 10% in the next quarter."

KPIs can be financial, including net profit (or the bottom line, net income), revenues minus certain expenses, or the current ratio (liquidity and cash availability). Customer-focused KPIs generally center on per-customer efficiency, customer satisfaction, and customer retention.

' Metrics are quantifiable measurements used to measure business performance. So the main difference between measurement and metric is, measurement gives you a vague number but metrics give you specific numbers. Typical examples of metrics: Increase in website traffic, decrease in bounce rate, etc.

The results can therefore be anywhere between 1 and 5. The ratings are calculated as mean ratings (the sum divided by the number of answers). An approved rating is from 3.50, 'good' is from 4.00, and 'very good' is 4.20 or higher.

Present your KPIs – use appropriate charts, graphs and tabular data that will present the metrics in the simplest possible way. "Keep the charts relevant, focused and in context. Present your KPIs in a logical order to keep the flow of information or the 'story' from getting disjointed," the experts say.

What are the top 3 key financial metrics in any company? There are 3 top financial metrics that are important in every company: revenue, net profit, and burn rate.

What are financial metrics? ›

Financial metrics are vital for assessing the performance and health of any business. From revenue and profitability to the costs you incur to attract new customers, there are various key indicators that every company should track and monitor regularly.

The five primary types of performance indicators are profitability, leverage, valuation, liquidity and efficiency KPIs. Examples of profitability KPIs include gross and net margin and earnings per share (EPS). Efficiency KPIs include the payroll headcount ratio. Examples of liquidity KPIs are current and quick ratios.

This popular acronym stands for Specific, Measurable, Attainable, Realistic, and Time-bound. This is a useful touchstone whenever you're considering whether a metric should be a key performance indicator. SMART KPI examples are KPIs such as “revenue per region per month” or “new customers per quarter”.

KPIs are the key targets you should track to make the most impact on your strategic business outcomes. KPIs support your strategy and help your teams focus on what's important. An example of a key performance indicator is, “targeted new customers per month”.

Metrics are lower-level indicators specific to a department, while KPIs can be tracked by various departments working towards the same goal. Metrics provide context to your business activities, and KPIs allow for strategic decision-making.

There are many different forms of performance metrics, including sales, profit, return on investment, customer happiness, customer reviews, personal reviews, overall quality, and reputation in a marketplace.

30 Key Performance Indicators Examples & Definitions. We've broken down our list of KPIs into the four categories of the Balanced Scorecard: Financial, Customer, Process and People. Make sure you select a few from each category so that your strategy is well-balanced across the organization.