Key Performance Indicators
A collection of terms, metrics, and calculations for your business.
Earnings Before Interest & Tax / Revenue x 100
Measure of the proportion of revenue that is left over once all the expenses have been deducted.
Fixed Costs / Contribution Margin
The dollar amount of revenue at which you will have a profit of 0.
Net Sales/ Average Total Assets
Measures how effectively you have used your assets to generate revenue.
Net Profit/Sales x 100
Measures how much of each dollar your business makes translates into profit.
(Cost of Sales + Expenses) / Revenue x 100
Measures how effectively your company is operating.
Total Fixed Cost / (Price Per Unit – Variable Cost Per Unit)
The number of units you have to sell, so you can cover all your costs.
Revenue (Period A) x # Periods In A Year
Estimates how much money you might make over a specific period.
(Total Accounts Receivable Outstanding/Total Sales) x Number of days
Measures how effectively your company is collecting the money owed by your customers.
Operating Cash Flow / Revenue x 100
The company’s ability to convert sales into cash.
Actual Sales - Breakeven Sales
The total number of sales dollars you can lose before your company starts making a loss.
Cash From Operations - Capital Expenditures
The money your business has left after paying for everything you need to continue operating.
Total Revenue / Number Of Employees
Measures how much money your employee make for your company.