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Key Performance Indicators (KPI) by Bernard Marr

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1

Net profit

Strategic perspective

Financial perspective

Key performance question this indicator helps to answer

To what extent are we generating bottom-line results?

Why is this indicator important?

Profits are important for all businesses regardless of whether they are in the private or public sector. Simply put: the very nature of business is to produce goods or services that you can sell for a financial return or reward. Taking away the costs of producing goods and providing services from the revenue or sales you are generating will leave you with your profits.

For any business, net profit (also referred to as net income) typically represents the most important measure of performance. Net profit shows us whether there is still any ...

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