6/13/2017 TheFinancialKPILibrary:68MeasuresToConsiderTracking

The Financial KPI Library: 68 Measures To Consider

Tracking
DYLAN MIYAKE | SEPTEMBER 18, 2015

Financial measures are the most frequently used metrics in many organizations. They are at the top of a for profit Balanced
Scorecard and often serve as the foundation for government and nonprofit scorecards.

We get questions all the time about the best way to ensure youre on track with your finances. While its true that your measures
should support on your strategy, its true that some measures are better than others. Keep in mind that you should have a balance
of customer, process, and HR measures as well. (Click on the links to check out our customer measure library, our process KPI
library, and our key HR metrics.).

Many organizations consider financial performance indicators to be the ultimate outcome measurefor good reason. They are very
important to monitor, and because every company uses them, theyre great for comparing how youre doing against your

competition. To give you a leg up, weve compiled this library of 68 important financial KPIs and scorecard measures that you may
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competition. To give you a leg up, weve compiled this library of 68 important financial KPIs and scorecard measures that you may
want to consider implementing.

Note: Were not suggesting nor advocating for you to begin measuring all of these KPIs. Rather, you can use this extensive list to get
an idea of what like-minded organizations may be looking at, then research KPIs from other lists, and decide upon the critical few
that are in line with your strategy.

Cash Flow KPIs

1. Working Capital: Measures an organizations financial health by analyzing readily available resources that could be used to
meet any short-term obligations.

2. Operating Cash Flow: The amount of cash generated by regular business operations.

3. Cash Rotation (365/Cash Cycle): The number of times the cash comes back to the organization for a period of one year.

4. Cash Flow from Investing Activities: Shows the change in an organizations cash position caused by investments, gains, or
losses.

5. Cash Flow from Financing Activities: Demonstrates an organizations financial strength. Formula: (Cash Received from Issuing
Stock or Debt) (Cash Paid as Dividends and Reacquisition of Debt/Stock) = (Cash Flow from Financing Activities)

6. Cash Flow: The total amount of money being transferred into and out of an organization.

7. Cash Conversion Cycle: Demonstrates the amount of time it takes for money invested in the organization to come back to the
organization in the form of increased revenue.

8. Accounts Receivable Turnover: The rate at which an organization collects on outstanding accounts. Formula: (Net Credit Sales)
/ (Average Accounts Receivable) = (Accounts Receivable Turnover)

9. Accounts Receivable: The amount of money an organization is owed by its customers.

10. Accounts Payable Turnover: The rate at which an organization pays off suppliers and other expenses. Formula: (Total Supplier
Purchases) / (Average Accounts Payable) = (Accounts Payable Turnover)

11. Accounts Payable: Shows the amount of money an organization owes its suppliers.

12. Number/Percentage of Invoices Past Due: Invoices that remain unpaid after their due date.

Cost KPIs
13. Total Expenses: Consists of the total costs an organization incurs during a reporting period (including marketing, sales, and
operations costs).

14. SG&A: The costs of operating an organizationincluding selling, and general and administrative expensesare collectively
referred to as SG&A.

15. Sales Expense: Costs incurred by the sales departmentincluding salaries and commissions.

16. Marketing Expenses: Encompasses the total costs incurred by the marketing department, including advertising, salaries,
research, and surveys.

17. Inventory Turnover: The number of times an organization is able to sell off its in-stock inventory in a given period. Formula:
(Sales) / (Inventory) = (Inventory Turnover)

18. Cost Per Unit: The price to produce, store, and sell one unit of a particular product including fixed and variable costs of
production. Formula: ([Variable Cost] + [Fixed Cost]) / (Number of Units Produced) = (Cost Per Unit)

19. Cost Per Hire: The average cost of hiring a new employee, including advertising fees, employee referrals, travel expenses,
relocation expenses, and recruiter costs. Formula: (New Hire Expenses) / (Number of New Hires) = (Cost Per Hire)

20. Cost of Goods Sold (COGS): Represents the cost of materials and direct labor used to produce a good.

21. Average Annual Expenses to Serve One Customer: This is the average amount needed to serve one customer. Formula: (Total 2/6
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21. Average Annual Expenses to Serve One Customer: This is the average amount needed to serve one customer. Formula: (Total
Expenses) / (Total Customers) = (Average Annual Expenses to Serve One Customer)

22. Customer Acquisition Cost: The cost to acquire one new customer.

23. Cost per Click: Measures the cost of a pay-per-click advertising campaign (such as Google AdWords).

24. Percentage of Cost of Workforce: The cost of the workforce as compared to all costs can be measured by summing all salaries
and dividing by the total company costs within a given time period. Formula: (Salary Costs) / (Total Company Costs) =
(Percentage of Cost of Workforce)

25. Health Care Expense per Current Employee: The total price of health care costs divided out among all employees provides an
understanding of the comprehensiveness of a companys health care plan.

Debt KPIs

26. Quick Ratio (Acid Test): Shows the ability of an organization to meet any short-term financial liabilities, such as upcoming
bills. Formula: ([Current Assets] [Inventories]) / (Current Liabilities) = (Quick Ratio)

27. Price-Earnings Ratio (P/E): An equity valuation multiple that compares an organizations share price to its per-share earnings.
Formula: (Market Value Per Share) / (Earnings Per Share) = (Price-Earnings Ratio)

28. Debt to Equity Ratio: Measures how an organization is funding its growth and using shareholder investments. Formula: (Total
Liabilities) / (Shareholders Equity) = (Debt to Equity Ratio)

29. Debt Level: The amount of debt that an organization currently has.

30. Current Ratio: Measures the ability of an organization to pay all of its debts over a given time period. Formula: (Current Assets)
/ (Current Liabilities) = (Current Ratio)

31. Bad Debt: Debt that is not collectible, and is often written off as an expense.

Investment KPIs

32. Savings Levels Due to Improvement Efforts: Many organizations look at investing in improvements, or merging operations (or
even companies). This KPI looks at the dollar value of the savings achieved as a result of these investments.

33. Return on Innovation Investment: Can be calculated by looking at the revenue from new products, or the number of new
products meeting a revenue threshold. This is typically only reviewed by organizations that have created an innovation
department or budget.

34. Inventory Assets: The cost of merchandise purchased or manufactured, but not yet sold, may be a good leading indicator of
preparedness for growth or even slowing growth.

35. Innovation Spending: The amount of money that an organization spends on innovation. Some organizations have this
budgeted as research and development, and others have different accounting terms. Ultimately, if you use this measure, you are
valuing innovation as a key strategic thrust.

36. Break Even Time: The time it takes an organization to break even from its investment in a new product or process. If the costs
are big up front, this measure can help you understand how long it will take to recoup these expenses.

37. Percentage of Investment in: Used for measuring investments in different lines of business. You might measure the
percentage of your investment in organic products vs. total investment in products overall. Formula: (Amount of Investment) /
(Total Capital Spent) = (Percentage of Investment)

38. Number of Key Capital Investments that Meet or Exceed ROI Expectations: Can be based on the plan for investments, or
on the results of past investments. Useful for organizations that invest in many capital projects.

Protability KPIs
39. Sales Growth: The change in an organizations sales from one reporting period to another. Formula: ([Current Sales] [Past
Sales]) / (Past Sales) = (Sales Growth)

40. ROI (Return on Investment): Shows the efficiency of an investment. Formula: ([Gain from Investment] [Cost of Investment]) / 3/6
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40. ROI (Return on Investment): Shows the efficiency of an investment. Formula: ([Gain from Investment] [Cost of Investment]) /
(Cost of Investment) = (ROI)

41. ROE (Return on Equity): The amount of net income an organization generates compared to the amount of shareholders
equity. Formula: (Net Income) / (Shareholders Equity) = (ROE)

42. ROA (Return on Assets): Indicates how profitable an organization is relative to its total assets. Formula: (Net Income) / (Total
Assets) = (ROA)

43. Return on Capital Employed: Measures an organizations profitability and the efficiency with which its capital is employed.

44. Program Profitability: Tracks the profitability of an individual program.

45. Operating Profit Margin: Measures income after variable costs of production are considered. Formula: (Operating Income) /
(Net Sales) = (Operating Profit Margin)

46. Net Profit Margin: The percentage of an organizations revenue that is net profit. Formula: (Net Profit) / (Revenue) = (Net Profit
Margin)

47. Net Profit: The amount of money an organization makes after taking out all expenses and other costs. Formula: (Income)
(Expenses) = (Net Profit)

48. Gross Profit Margin: The percentage of revenue that is profit after the cost of production and sales is considered. Formula:
(Gross Margin) / (Revenue) = (Gross Profit Margin)

49. Gross Profit: An organizations profit after the cost of production and sales is considered. Formula: (Revenue) (COGS) = (Gross
Profit)

50. Economic Value Added (EVA): An estimate of an organizations economic profit.

51. Average Capital Employed: Shows profitability compared to investments made in new capital.

52. Customer Lifetime Value: The net profit an organization anticipates gaining from a customer over the entire length of a
relationship helps to determine the costs/benefits of acquisition efforts.

53. (Customer Lifetime Value) / (Customer Acquisition Cost): The ratio of customer lifetime value to customer acquisition cost
should ideally be greater than one, as a customer is not profitable if the cost to acquire is greater than the profit they will bring
to a company. Formula: (Net Expected Lifetime Profit from Customer) / (Cost to Acquire Customer)

54. Human Capital Value Added (HCVA): By taking all non-employee related costs away from the revenue and dividing the result
by the number of full-time employees, one can deduce how profitable the average worker in an organization is. Formula:
([Revenue] [Non-Employee-Related Costs]) / (Number of Full-Time Employees) = (HCVA)

Revenue KPIs
55. Sales Volume: The amount of sales in a reporting period, expressed in the number of units sold.

56. Sales Forecast Accuracy: The proximity of the forecasted quantity of sales to the actual quantity of sales.

57. ROI of Research & Development: The revenue generated by investing money into research and development. Formula: ([Gain
from Investment] [Cost of Investment]) / (Cost of Investment) = (ROI of Research & Development)

58. Revenue per Full-Time Employee (FTE): Demonstrates how expensive an organization is to run. Formula: (Revenue) / (Number
of FTE) = (Revenue per FTE)

59. Revenue Growth Rate: The rate at which an organizations income is increasing. Formula: ([Current Revenue] [Past Revenue])
/ (Past Revenue) = (Revenue Growth Rate)

60. Revenue: The total income an organization receives. Formula: (Price of Goods) x (Number of Goods Sold) = (Revenue)

61. Operating Income: The profit from operations after removing operating expenses. Formula: (Gross Income) (Operating
Expenses) (Depreciation & Amortization) = (Operating Income)

62. Net Income: The amount of sales after subtracting discounts, returns, and damaged goods. Formula: (Revenue) (Expenses) =
(Net Income)

63. EBT (Earning Before Taxes): Shows how much an organization has made after considering COGS, interest, and SG&A expenses, 4/6
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63. EBT (Earning Before Taxes): Shows how much an organization has made after considering COGS, interest, and SG&A expenses,
before taxes are subtracted. Formula: (Revenue) (COGS) (Interest) (SG&A) = (EBT)

64. EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization): Measures revenue after expenses are considered
and interest, taxes, depreciation and amortization are excluded. Formula: (Revenue) (Expenses Excluding Interest, Tax,
Depreciation & Amortization) = (EBITDA)

65. Average Annual Sales Volume per Customer: This is the average amount of sales per customer, expressed in currency.
Formula: (Total Sales) / (Total Customers) = (Average Annual Sales Volume per Customer)

66. Asset Utilization: Total revenue earned for every dollar of assets an organization owns. Formula: (Total Revenue) / (Total
Assets) = (Asset Utilization)

67. Share of Wallet: Measures the portion of a customers total spending that goes toward the companys products and services.

68. Earnings Before Interest and Taxes (EBIT): An indicator of a companys profitability with expenses removed and interest and
tax excluded. Formula: (Revenue) (COGS) (Operating Expenses) = (EBIT)

Want to take this list with you? Click belowto download all 68 KPIs in an Excel document.

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