KPIs
Does your company utilize key performance indicators (KPIs) to measure success?
There are a number of KPIs used to assess strengths and weaknesses within an organization. From financial to operational, these metrics can be used to compare your company’s performance against industry benchmarks including:
| Financial KPIs • EBITA • Net profit margin • Gross profit margin • Percent of budget • Debt to equity • Return on assets • Return on equity • Current ratio • Working capital • Average collection period • Inventory turnover • Z-Score • Sustainability growth rate |
Operational KPIs • Units per transaction • Carrying cost of inventory • Order tracking • Rate of return • Inventory to sales ratio • Order status • Inventory accuracy • Back order rate • Perfect order rate • Sales per employee • Cost of quality • Labor efficiency • Overall equipment effectiveness |
To enhance the results, integrating KPIs with an executive dashboard is recommended. The dashboard should generate real time information to stakeholders responsible for reviewing and reacting to the results. For example, if gross margin for a specific product continuously falls below the estimated rate of return, operations and purchasing should identify cost improvement opportunities.
Reviewing financial and operational performance through KPIs is important regardless of your company’s current state. Contact Promontory Point Partners, LLC to learn about how you can develop and implement KPIs within your organization.
