Chapter 21
The Top Ten KPIs to Use
In This Chapter
Working out how profitable the business is
Establishing whether your customers would recommend you
Working out what your employees think of your business
There are 1000s of KPIs that are commonly used in business. That’s a lot of information, a lot of data collection and a lot of report reading! But don’t panic ⦠here are the top ten KPIs you absolutely must know about for your business.
Revenue Growth Rate
The purpose of business is to make money or revenue. Revenue, also known as turnover, is the income that the business generates through sales of goods and services.
Revenue growth rate helps you to answer the question: How well are we growing the business. This KPI is simply this quarter’s (or any other time frame such as month or year) revenue compared to the previous quarter (or any other time frame). This data can be extracted from the general ledger and captured in the income statement.
Always compare like with like for a meaningful comparison.
Net Profit Margin
Net profit margin helps you to answer the question: ‘How much ...
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