25 Need-To-Know Key Performance Indicators

Chapter 6

Revenue growth rate

• Why: To better understand your financial performance, particularly how well the business is growing
• What: To measure the growth in income a company receives
• When: When investors and managers want to understand to what extent the business is growing
• The question this indicator helps you to answer: how well are we growing the business?

Why does this KPI matter?

It is the basic fact of business that commercial organisations exist to make money. And although there are a number of factors to consider, the primary driver of ‘making money’ is to grow revenues.

Revenue (sometimes referred to as turnover or sales) is simply the income that a company receives from its normal business activ-ities, usually the sale of goods ...