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Everyone 
Should Know 
The 
Finan7cial 
Need-to-Know 
Finance 
KPIs
1 Revenue growth rate 
- measures whether you 
are increasing sales and 
therefore growing your 
business. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
2 Net profit 
- the bottom line: 
deducting the money you 
spent from the money 
you made. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
3 Net profit margin 
- measures how much 
profit are we generating 
for each dollar we make 
in sales. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
4 Gross profit margin 
- we subtract the costs of 
producing goods or 
delivering services from 
the revenue. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
5 Operating profit margin 
- removing the costs of 
operating the business 
from the revenue. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
6 Return on investment 
- how much money do 
you get in return from 
your investment. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
7 Cash conversion cycle 
- how long does it take 
from spending money on 
the business to getting 
money back. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
For more on the topic, check out my 
LinkedIn Influencer blog: 
BLOG 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
Order Options: 
• Amazon US 
• Amazon UK 
• Barnes & Noble 
• Pearson 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
About 
This overview was put together by 
Bernard Marr, 
Founder and CEO of the Advanced Performance Institute. 
Bernard Mar is a bestselling business author, keynote speaker, strategic 
performance consultant, and analytics, KPI & Big Data guru. He helps 
companies with their big data strategies and trains teams to better leverage data 
in their companies. 
Read Bernard’s blogs: 
• LinkedIn Influencer Blog 
Connect with Bernard on: 
• LinkedIn 
• Twitter 
• Advanced Performance Institute 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.

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7 Financial KPIs Everyone Needs To Know

  • 1. Everyone Should Know The Finan7cial Need-to-Know Finance KPIs
  • 2. 1 Revenue growth rate - measures whether you are increasing sales and therefore growing your business. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 3. 2 Net profit - the bottom line: deducting the money you spent from the money you made. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 4. 3 Net profit margin - measures how much profit are we generating for each dollar we make in sales. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 5. 4 Gross profit margin - we subtract the costs of producing goods or delivering services from the revenue. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 6. 5 Operating profit margin - removing the costs of operating the business from the revenue. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 7. 6 Return on investment - how much money do you get in return from your investment. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 8. 7 Cash conversion cycle - how long does it take from spending money on the business to getting money back. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 9. For more on the topic, check out my LinkedIn Influencer blog: BLOG © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 10. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 11. Order Options: • Amazon US • Amazon UK • Barnes & Noble • Pearson © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 12. About This overview was put together by Bernard Marr, Founder and CEO of the Advanced Performance Institute. Bernard Mar is a bestselling business author, keynote speaker, strategic performance consultant, and analytics, KPI & Big Data guru. He helps companies with their big data strategies and trains teams to better leverage data in their companies. Read Bernard’s blogs: • LinkedIn Influencer Blog Connect with Bernard on: • LinkedIn • Twitter • Advanced Performance Institute © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.