The document discusses 7 key financial performance indicators (KPIs) that everyone should know: 1) Revenue growth rate, 2) Net profit, 3) Net profit margin, 4) Gross profit margin, 5) Operating profit margin, 6) Return on investment, 7) Cash conversion cycle. It was created by Bernard Marr, founder and CEO of the Advanced Performance Institute, to provide an overview of essential financial metrics for measuring business performance.
2. 1 Revenue growth rate
- measures whether you
are increasing sales and
therefore growing your
business.
Š 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.
Š 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.
Š 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.
Š 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.
Š 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.
Š 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.
Š 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
9. For more on the topic, check out my
LinkedIn Influencer blog:
BLOG
Š 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
10. Š 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
11. Order Options:
⢠Amazon US
⢠Amazon UK
⢠Barnes & Noble
⢠Pearson
Š 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 Bernardâs blogs:
⢠LinkedIn Influencer Blog
Connect with Bernard on:
⢠LinkedIn
⢠Twitter
⢠Advanced Performance Institute
Š 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.