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Finance KPIs

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Yajuvendar Gaddam
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32 views9 pages

Finance KPIs

Uploaded by

Yajuvendar Gaddam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PUJA PRASAD

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PUJA PRASAD
@pujaprasad

Gross Profit Margin:


Measures profitability by calculating the percentage
of revenue left after deducting the cost of goods sold
(COGS).

Net Profit Margin:


The percentage of profit a company earns after all
expenses, taxes, and interest have been deducted
from total revenue.

EBITDA:
EBITDA (Earnings Before Interest, Taxes, Depreciation,
and Amortization) indicates a company’s operating
performance by excluding the effects of financing
and accounting decisions.
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Operating Profit Margin:


This shows the percentage of profit made from core
business operations, excluding taxes and interest.

Return on Assets (ROA):


Assesses how efficiently a company uses its assets to
generate profit.

Return on Equity (ROE):


Measures profitability relative to shareholders' equity,
indicating how well shareholder investments are
being used.
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Earnings Per Share (EPS):


Indicates the portion of a company’s profit allocated
to each outstanding share of stock.

Price-to-Earnings Ratio (P/E):


Compares a company's share price to its earnings
per share to assess valuation.

Break-even Point:
The sales level at which total revenues equal total
costs, resulting in zero profit or loss.
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Customer Acquisition Cost:


Customer Acquisition Cost (CAC) is the total cost of
acquiring a new customer, including marketing and
sales expenses.

Customer Lifetime Value:


The total revenue a company expects to generate
from a customer over the relationship duration.

Contribution Margin:
The amount remaining after deducting variable costs
from revenue, used to cover fixed costs and generate
profit.
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Gross Burn Rate:


The total amount of cash a company spends on
operations per month, without considering any
incoming revenue. It reflects how quickly a company is
using its cash reserves.

Net Burn Rate:


The amount of cash a company loses per month after
accounting for revenues, showing how long a
company can sustain operations before running out
of cash.

Budget Variance:
Difference between the budgeted and actual financial
performance.
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Total Shareholder Return:


The total return on investment, including capital gains
and dividends. It's expressed as a percentage and
reflects the total financial benefit investors receive
from holding a co

NOPAT:
Net Operating Profit After Taxes or NOPAT is the
profitability measure showing operating profits after
adjusting for taxes.

Economic Value Added:


Indicates a company’s true economic profit after
considering the cost of capital.
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Days Inventory Outstanding:


Measures the average time inventory stays in stock
before being sold. A lower DIO indicates efficient
inventory management, while a higher DIO may
suggest overstocking or slow sales.

Days Sales Outstanding:


The average number of days it takes for a company
to collect payment after a sale. A lower DSO means
faster cash collection, while a higher DSO indicates
slower customer payments.

Days Payable Outstanding:


The average time a company takes to pay its
suppliers. A higher DPO means the company is
holding onto cash longer, while a lower DPO may
indicate quicker payments to suppliers.
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