Measurable key performance indicators (KPIs) for finances.
Key Takeaways
  • Pick the critical few financial KPIs that match your strategy. The 68 measures here are a menu to research, not a list to track in full.
  • Balance financial measures with customer, process and HR measures. Financial results sit at the top of a for-profit scorecard; non-financial measures show what drives them.
  • Use financial KPIs to compare yourself with competitors. Every company tracks them, which makes them good benchmarks against your competition.
  • Track customer lifetime value against acquisition cost. The ratio should stay above one; a customer who costs more to acquire than they return is unprofitable.
  • Place your chosen measures under the financial perspective of a Balanced Scorecard. Then add the customer, process and HR measures that drive them.
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Financial measures are the most frequently used metrics in many organizations.  They are at the top of a for profit Balanced Scorecard and often serve as the foundation for government and nonprofit scorecards.


We get questions all the time about the best way to ensure you’re on track with your finances.  While your measures should support your strategy, some measures are better than others.  Keep in mind that you should have a balance of customer, process, and HR KPIs as well.

Many organizations consider financial performance indicators to be the ultimate outcome measure—for good reason. They are very important to monitor, and because every company uses them, they’re great for comparing how you’re doing against your competition. To give you a leg up, we’ve compiled this library of 68 important financial KPIs and scorecard measures that you may want to consider implementing.

Note: We’re not suggesting nor advocating for you to begin measuring all of these KPIs. Rather, you can use this extensive list to get an idea of what like-minded organizations may be looking at, then research KPIs from other lists, and decide upon the critical few that are in line with your strategy.

Cash Flow KPIs

Working Capital

LaggingMeasures an organization's financial health by analyzing readily available resources that could be used to meet any short-term obligations.
Formula
Current assets − current liabilities.
Example
$600,000 − $300,000 = $300,000.
What good looks like
there is no universal dollar figure — positive working capital means short-term assets cover short-term bills, but too much ties up cash, so track it with the current ratio and cash conversion cycle
Weak → strong
"Keep enough cash on hand" → "Hold working capital at or above $300,000 at every quarter-end this year, owned by the Controller via weekly cash forecasting".

Operating Cash Flow

LaggingBetter when higherThe amount of cash generated by regular business operations.
Formula
Net income + non-cash expenses ± changes in working capital.
Example
$400,000 + $150,000 − $50,000 = $500,000.
What good looks like
there is no universal number — over time healthy organizations generate operating cash flow at or above net income, and a persistent gap below profit is a warning sign
Weak → strong
"Generate more cash" → "Grow operating cash flow from $500,000 to $575,000 this fiscal year by collecting receivables faster, owned by the Controller."

Cash Rotation (365/Cash Cycle)

LaggingBetter when higherThe number of times the cash comes back to the organization for a period of one year.
Formula
365 ÷ Cash Cycle
Example
365 ÷ 73 days = 5 times a year.
What good looks like
there is no universal number — it mirrors the cash conversion cycle, so higher rotation means cash comes back faster; benchmark it against peers in your industry
Weak → strong
"Turn cash faster" → "Raise cash rotation from 5 to 6 times a year by cutting the cash cycle from 73 to ~61 days by year-end, owned by the CFO."
Show all 12 Cash Flow KPIs

Cash Flow from Investing Activities

LaggingShows the change in an organization's cash position caused by investments, gains, or losses.
Formula
Cash from asset sales and investment returns − cash spent on capital assets and investments.
Example
$200,000 − $900,000 = −$700,000.
What good looks like
a negative figure is normal for an organization investing in its future; the real test is whether those investments later show up as operating cash flow
Weak → strong
"Invest wisely" → "Invest a net $700,000 in capital assets this fiscal year, with an approved business case for every project above $100,000, owned by the CFO."

Cash Flow from Financing Activities

LaggingDemonstrates an organization's financial strength.
Formula
(Cash Received from Issuing Stock or Debt) - (Cash Paid as Dividends and Reacquisition of Debt/Stock) = (Cash Flow from Financing Activities)
Example
$2,000,000 − $1,400,000 = $600,000.
What good looks like
there is no good sign on its own — positive means you raised capital, negative means you repaid debt or returned cash, so judge it against the plan that justified it
Weak → strong
"Manage financing well" → "Keep net financing cash flow within $100,000 of the $600,000 capital plan this fiscal year, owned by the Treasurer."

Cash Flow

LaggingThe total amount of money being transferred into and out of an organization.
Formula
Cash inflows − cash outflows.
Example
$5,200,000 − $4,900,000 = $300,000.
What good looks like
there is no universal number — sustained positive cash flow from operations matters more than any single period, so read it with the operating, investing, and financing breakdown
Weak → strong
"Keep cash healthy" → "Generate at least $300,000 in net cash flow each quarter this fiscal year, owned by the Controller."

Cash Conversion Cycle

LaggingBetter when lowerDemonstrates the amount of time it takes for money invested in the organization to come back to the organization in the form of increased revenue.
Formula
Days inventory outstanding + days sales outstanding − days payable outstanding.
Example
40 + 15 − 25 = 30 days.
What good looks like
lower is better; the 1,000 largest U.S. public nonfinancial companies had a cash conversion cycle of 37 days in The Hackett Group's 2025 working capital survey
Weak → strong
"Free up cash" → "Cut the cash conversion cycle from 30 to 25 days within a year, owned by the CFO via faster collections and leaner inventory".

Accounts Receivable Turnover

LaggingThe rate at which an organization collects on outstanding accounts.
Formula
(Net Credit Sales) / (Average Accounts Receivable) = (Accounts Receivable Turnover)
Example
$2,400,000 ÷ $300,000 = 8.0×.
What good looks like
higher means faster collection; APQC's cross-industry median DSO of 38 days works out to ~9.6 turns a year, and top performers collecting in 30 days or less turn receivables ~12 times
Weak → strong
"Collect faster" → "Raise AR turnover from 8.0× to 9.5× within a year, owned by the Credit & Collections Manager via tighter payment terms".

Accounts Receivable

LaggingThe amount of money an organization is owed by its customers.
Formula
Opening receivables + credit sales − customer payments received.
Example
$400,000 + $1,200,000 − $1,100,000 = $500,000.
What good looks like
track it as days sales outstanding: APQC benchmarks put top performers at 30 days or less, the median at ~38 days, and the bottom performers at 48 days or more (lower is better)
Weak → strong
"Collect faster" → "Bring receivables down from $500,000 to $420,000 and DSO under 36 days by Q4, owned by the AR manager."

Accounts Payable Turnover

LaggingThe rate at which an organization pays off suppliers and other expenses.
Formula
(Total Supplier Purchases) / (Average Accounts Payable) = (Accounts Payable Turnover)
Example
$1,200,000 ÷ $200,000 = 6.0×.
What good looks like
lower turnover means paying suppliers more slowly and holding cash longer; the 1,000 largest U.S. public nonfinancial companies averaged 59 days payable outstanding in 2025, about 6 turns a year, so balance it against supplier terms
Weak → strong
"Manage supplier payments better" → "Move AP turnover from 6.0× to 5.5× within a year by paying on agreed terms rather than early, owned by the AP Manager".

Accounts Payable

LaggingShows the amount of money an organization owes its suppliers.
Formula
Opening payables + new supplier invoices − payments to suppliers.
Example
$250,000 + $900,000 − $850,000 = $300,000.
What good looks like
there is no universal number — track it with days payable outstanding and aim to pay on agreed terms: paying too early wastes cash, paying too late strains suppliers
Weak → strong
"Pay suppliers on time" → "Pay 95% of supplier invoices within agreed terms while holding payables near $300,000, owned by the AP manager, reviewed monthly."

Number/Percentage of Invoices Past Due

LaggingBetter when lowerInvoices that remain unpaid after their due date.
Formula
(Invoices past due ÷ total open invoices) × 100.
Example
45 ÷ 300 = 15%.
What good looks like
lower is better; North American businesses report overdue invoices averaging ~23% of B2B receivables, with most settled within a month of the due date
Weak → strong
"Chase late payers" → "Cut past-due invoices from 15% to 10% of open invoices within two quarters, owned by the AR Manager via automated reminders".

Cost KPIs

Total Expenses

LaggingBetter when lowerConsists of the total costs an organization incurs during a reporting period (including marketing, sales, and operations costs).
Formula
Cost of goods sold + operating expenses + other expenses.
Example
$5,000,000 + $3,200,000 + $300,000 = $8,500,000.
What good looks like
there is no universal number — judge expenses against revenue and output, since spending that grows slower than revenue is the real goal
Weak → strong
"Spend less" → "Hold total expenses at $8,500,000 this fiscal year while revenue grows 5%, owned by the CFO."

SG&A

LaggingThe costs of operating an organization—including selling, and general and administrative expenses—are collectively referred to as SG&A.
Formula
Selling expenses + general and administrative expenses.
Example
$900,000 + $700,000 = $1,600,000.
What good looks like
across U.S. public companies SG&A averages ~16% of sales, but it ranges widely by sector, so track it as a share of revenue and keep it growing slower than sales
Weak → strong
"Control overhead" → "Hold SG&A at or below $1,600,000, under 16% of revenue, through the fiscal year, owned by the CFO."

Sales Expense

LaggingCosts incurred by the sales department—including salaries and commissions.
Formula
Sales salaries + commissions + travel + other selling costs.
Example
$400,000 + $150,000 + $50,000 + $100,000 = $700,000.
What good looks like
there is no universal number — track it as a share of revenue and against new revenue won, so spend rises only when it brings in more sales
Weak → strong
"Spend less to sell more" → "Hold sales expenses at $700,000 this fiscal year while growing new bookings 10%, owned by the VP of Sales."
Show all 13 Cost KPIs

Marketing Expenses

LaggingEncompasses the total costs incurred by the marketing department, including advertising, salaries, research, and surveys.
Formula
Advertising + marketing salaries + research + other marketing costs.
Example
$300,000 + $250,000 + $50,000 + $100,000 = $700,000.
What good looks like
there is no universal number, so set spend against your industry and growth goals and judge it by the pipeline it produces
Weak → strong
"Spend marketing money wisely" → "Hold marketing expenses at $700,000, 7% of revenue, this fiscal year while growing pipeline 15%, owned by the CMO."

Inventory Turnover

LaggingThe number of times an organization is able to sell off its in-stock inventory in a given period.
Formula
(Sales) / (Inventory) = (Inventory Turnover)
Example
$6,000,000 ÷ $1,000,000 = 6 turns.
What good looks like
U.S. manufacturers carry ~1.5 months of shipments in inventory (Census data), but healthy turns vary widely by sector, so benchmark within your industry and watch stockouts as turns rise
Weak → strong
"Carry less inventory" → "Raise inventory turnover from 6 to 7 turns this fiscal year without raising the backorder rate, owned by the supply chain director".

Cost Per Unit

LaggingBetter when lowerThe price to produce, store, and sell one unit of a particular product including fixed and variable costs of production.
Formula
([Variable Cost] + [Fixed Cost]) / (Number of Units Produced) = (Cost Per Unit)
Example
$300,000 ÷ 60,000 units = $5/unit.
What good looks like
there is no universal number — it depends on product and volume, so compare it against your own trend and standard cost, and check that falling unit cost is not coming from deferred maintenance or lower quality
Weak → strong
"Make products cheaper" → "Cut cost per unit from $5.00 to $4.70 by Q4, owned by the plant controller via scrap and changeover reductions".

Cost Per Hire

LaggingBetter when lowerThe average cost of hiring a new employee, including advertising fees, employee referrals, travel expenses, relocation expenses, and recruiter costs.
Formula
(New Hire Expenses) / (Number of New Hires) = (Cost Per Hire)
Example
$120,000 ÷ 30 hires = $4,000.
What good looks like
HR benchmarking put the 2025 median cost per hire at ~$1,200 for nonexecutive roles and ~$10,625 for executive roles, so track it by role level and watch quality of hire alongside it (lower is better)
Weak → strong
"Hire more efficiently" → "Cut cost per hire from $4,000 to $3,500 within a year, owned by the Talent Acquisition Manager via more employee referrals".

Cost of Goods Sold (COGS)

LaggingRepresents the cost of materials and direct labor used to produce a good.
Formula
Beginning inventory + purchases − ending inventory.
Example
$200,000 + $900,000 − $150,000 = $950,000.
What good looks like
read it as a share of revenue — U.S. listed firms averaged ~38% gross margin in January 2026, so COGS took ~62% of revenue; lower COGS relative to revenue is better
Weak → strong
"Lower production costs" → "Cut quarterly COGS from $950,000 to $900,000 at current volume by Q4, owned by the VP of Operations via supplier renegotiation".

Average Annual Expenses to Serve One Customer

LaggingThis is the average amount needed to serve one customer.
Formula
(Total Expenses) / (Total Customers) = (Average Annual Expenses to Serve One Customer)
Example
$3,600,000 ÷ 1,200 customers = $3,000.
What good looks like
there is no universal number — compare it with average annual sales per customer, since the gap between the two is what each customer actually contributes
Weak → strong
"Serve customers more efficiently" → "Reduce the annual cost to serve one customer from $3,000 to $2,700 by next fiscal year through self-service, owned by the VP of Customer Operations."

Customer Acquisition Cost

LeadingBetter when lowerThe cost to acquire one new customer.
Formula
Total acquisition spend ÷ new customers acquired.
Example
$3M ÷ 15,000 = $200.
What good looks like
there is no universal number — lower is better, but judge it against the lifetime value of the relationship, since a deposit-plus-loan customer can justify far more spend than a single account
Weak → strong
"Spend less to win customers" → "Cut customer acquisition cost from $200 to $170 by Q4 while holding new-customer volume, owned by the head of marketing"

Cost per Click

LeadingBetter when lowerMeasures the cost of a pay-per-click advertising campaign (such as Google Ads).
Formula
Total ad spend ÷ total clicks.
Example
$5,000 ÷ 1,000 = $5.00.
What good looks like
search ads averaged ~$5.42 per click across industries in 2026, but costs vary widely by industry, so compare against your own sector and judge it alongside cost per lead (lower is better)
Weak → strong
"Lower our ad costs" → "Cut average search CPC from $5.00 to $4.25 by Q3, owned by the paid media manager via negative keywords and ad-quality fixes".

Percentage of Cost of Workforce

LaggingThe cost of the workforce as compared to all costs can be measured by summing all salaries and dividing by the total company costs within a given time period.
Formula
(Salary Costs) / (Total Company Costs) = (Percentage of Cost of Workforce)
Example
$4,200,000 ÷ $12,000,000 = 35%.
What good looks like
there is no universal number — service and knowledge businesses run far higher shares than manufacturers, so benchmark against industry peers and read it alongside revenue per employee
Weak → strong
"Control labor costs" → "Hold workforce cost at or below 35% of total costs this fiscal year, owned by the CFO via quarterly workforce planning".

Health Care Expense per Current Employee

LaggingThe total price of health care costs divided out among all employees provides an understanding of the comprehensiveness of a company's health care plan.
Formula
Total health care costs ÷ all employees.
Example
$2,400,000 ÷ 200 employees = $12,000.
What good looks like
the average employer-sponsored premium reached ~$9,325 for single and ~$26,993 for family coverage in 2025, up 5–6% in a year, so the goal is slower growth rather than a fixed number
Weak → strong
"Control health costs" → "Hold health care expense per employee at or under $12,600 (5% growth) next plan year, owned by the Benefits Manager via plan-design and pharmacy changes".

Debt KPIs

Quick Ratio (“Acid Test”)

LaggingShows the ability of an organization to meet any short-term financial liabilities, such as upcoming bills.
Formula
([Current Assets] - [Inventories]) / (Current Liabilities) = (Quick Ratio)
Example
($600,000 − $150,000) ÷ $300,000 = 1.5.
What good looks like
there is no universal number — a ratio above 1.0 means you can cover current liabilities without selling inventory, but compare with industry peers since some sectors run leaner
Weak → strong
"Stay liquid" → "Keep the quick ratio at or above 1.5 at every quarter-end this year, owned by the Treasurer".

Price-Earnings Ratio (P/E)

LaggingAn equity valuation multiple that compares an organization's share price to its per-share earnings.
Formula
(Market Value Per Share) / (Earnings Per Share) = (Price-Earnings Ratio)
Example
$60 ÷ $3 = 20×.
What good looks like
the aggregate U.S. market traded at ~34× net income in January 2026, but a good P/E depends on growth and industry — a high P/E means investors expect strong future earnings growth
Weak → strong
"Boost our valuation" → "Grow earnings per share from $3.00 to $3.60 within two years while holding a P/E near 20×, owned by the CFO".

Debt to Equity Ratio

LaggingMeasures how an organization is funding its growth and using shareholder investments.
Formula
(Total Liabilities) / (Shareholders’ Equity) = (Debt to Equity Ratio)
Example
$4,000,000 ÷ $2,500,000 = 1.6.
What good looks like
there is no universal number — capital-heavy industries such as utilities and banks run far higher ratios than software or services firms, so compare with industry peers and your lenders' covenants
Weak → strong
"Reduce our debt" → "Bring the debt-to-equity ratio from 1.6 to 1.3 within two years, owned by the CFO via scheduled debt paydown".
Show all 6 Debt KPIs

Debt Level

LaggingThe amount of debt that an organization currently has.
Formula
Short-term debt + long-term debt.
Example
$1,500,000 + $3,500,000 = $5,000,000.
What good looks like
there is no universal number — judge debt by what it funds and your ability to repay it, using debt-to-equity and interest coverage rather than the raw total
Weak → strong
"Manage our debt" → "Reduce total debt from $5,000,000 to $4,250,000 within two years while funding the capital plan, owned by the Treasurer."

Current Ratio

LaggingMeasures the ability of an organization to pay all of its debts over a given time period.
Formula
(Current Assets) / (Current Liabilities) = (Current Ratio)
Example
$600,000 ÷ $300,000 = 2.0.
What good looks like
there is no universal number — below 1.0 means current liabilities exceed current assets, while a very high ratio can mean idle cash, so compare with industry peers
Weak → strong
"Keep the balance sheet healthy" → "Maintain a current ratio between 1.8 and 2.2 at every quarter-end this year, owned by the Controller".

Bad Debt

LaggingBetter when lowerDebt that is not collectible, and is often written off as an expense.
Formula
Credit sales × expected uncollectible rate.
Example
$4,000,000 × 2% = $80,000.
What good looks like
there is no universal number — track it as a share of credit sales against your own history, and treat a rising trend as an early warning on credit policy (lower is better)
Weak → strong
"Collect more of what we're owed" → "Cut bad debt from $80,000 to under $60,000 this fiscal year by tightening credit checks, owned by the credit manager."

Investment KPIs

Savings Levels Due to Improvement Efforts

LaggingBetter when higherMany organizations look at investing in improvements, or merging operations (or even companies).
Formula
Baseline cost − cost after improvement.
Example
$1,200,000 − $1,050,000 = $150,000.
What good looks like
there is no universal number — count only savings verified against a documented baseline, and report cash savings separately from avoided costs
Weak → strong
"Save money through improvement" → "Deliver $200,000 in verified annual savings from process improvements by year-end, owned by the continuous improvement lead."

This KPI looks at the dollar value of the savings achieved as a result of these investments.

Return on Innovation Investment

LaggingCan be calculated by looking at the revenue from new products, or the number of new products meeting a revenue threshold.
Formula
Revenue from new products ÷ total innovation investment.
Example
$3,000,000 ÷ $1,000,000 = 3.0×.
What good looks like
there is no universal ratio — for context, new products made up ~28% of sales at North American firms in a PDMA benchmark study, so track your own ratio by launch cohort over several years
Weak → strong
"Get more from innovation" → "Lift return on innovation investment from 3.0× to 3.5× for products launched in the next two years, owned by the Chief Innovation Officer".

This is typically only reviewed by organizations that have created an innovation department or budget.

Inventory Assets

LaggingThe cost of merchandise purchased or manufactured, but not yet sold, may be a good leading indicator of preparedness for growth or even slowing growth.
Formula
Beginning inventory + purchases − cost of goods sold.
Example
$500,000 + $1,300,000 − $1,400,000 = $400,000.
What good looks like
U.S. businesses held ~1.3 months of sales in inventory through 2026 (Census inventories-to-sales ratio); a balance growing faster than sales signals slow-moving stock
Weak → strong
"Carry less stock" → "Cut inventory from $400,000 to $340,000 by Q4 without missing customer orders, owned by the supply chain manager."
Show all 7 Investment KPIs

Innovation Spending

LeadingThe amount of money that an organization spends on innovation.
Formula
R&D spend + other innovation project spend.
Example
$600,000 R&D + $150,000 innovation projects = $750,000.
What good looks like
U.S. companies that do R&D spend ~4.9% of domestic sales on it, rising to 16.9% in pharmaceuticals and 23.5% in semiconductors, so track it as a share of revenue against your industry
Weak → strong
"Invest in innovation" → "Raise innovation spending from $750,000 to $900,000 next fiscal year, tied to three funded pilots, owned by the Chief Innovation Officer."

Some organizations have this budgeted as research and development, and others have different accounting terms. Ultimately, if you use this measure, you are valuing innovation as a key strategic thrust.

Break Even Time

LaggingThe time it takes an organization to break even from its investment in a new product or process.
Formula
Total investment ÷ average monthly net cash inflow.
Example
$600,000 ÷ $25,000 = 24 months.
What good looks like
there is no universal number — shorter is better, so compare against your own past launches and the payback window your investment committee approves, measured from project start rather than launch
Weak → strong
"Make new products pay off sooner" → "Cut break-even time for new products from 24 to 18 months by next fiscal year, owned by the VP of Product via faster launch cycles".

If the costs are big up front, this measure can help you understand how long it will take to recoup these expenses.

Percentage of Investment in…

LeadingUsed for measuring investments in different lines of business.
Formula
(Amount of Investment) / (Total Capital Spent) = (Percentage of Investment)
Example
$1,500,000 ÷ $6,000,000 = 25%.
What good looks like
there is no universal number — the right share depends on strategy, so set a target mix for each line of business and check that actual spending matches the priorities you have declared
Weak → strong
"Invest more in organic products" → "Raise the organic line's share of product investment from 25% to 30% by fiscal year-end, owned by the VP of Product Strategy".

You might measure the percentage of your investment in organic products vs. total investment in products overall.

Number of Key Capital Investments that Meet or Exceed ROI Expectations

LaggingBetter when higherCan be based on the plan for investments, or on the results of past investments.
Formula
Count of key capital investments where actual ROI ≥ expected ROI.
Example
10 key investments reviewed, 7 with actual ROI ≥ expected = 7 investments.
What good looks like
there is no universal number — report it beside the total reviewed so 7 of 10 reads differently from 7 of 30, and study every miss in a post-investment review
Weak → strong
"Make investments pay off" → "Have at least 8 of 10 key capital investments meet or exceed their ROI targets within two years of completion, owned by the CFO."

Useful for organizations that invest in many capital projects.

Profitability KPIs

39. Sales Growth

LaggingBetter when higherThe change in an organization's sales from one reporting period to another.
Formula
([Current Sales] - [Past Sales]) / (Past Sales) = (Sales Growth)

40. ROI (Return on Investment)

LaggingBetter when higherShows the efficiency of an investment.
Formula
([Gain from Investment] - [Cost of Investment]) / (Cost of Investment) = (ROI)
Example
($130,000 − $100,000) ÷ $100,000 = 30%.
What good looks like
there is no universal number — compare it with your cost of capital or hurdle rate and with other uses of the same money, over the same time period
Weak → strong
"Invest wisely" → "Raise average ROI on approved capital projects from 30% to 35% this fiscal year, owned by the CFO via a standard business-case review".

41. ROE (Return on Equity)

LaggingBetter when higherThe amount of net income an organization generates compared to the amount of shareholders’ equity.
Formula
(Net Income) / (Shareholders’ Equity) = (ROE)
Example
$120,000 ÷ $800,000 = 15%.
What good looks like
U.S. listed firms averaged ~17% ROE in January 2026, but a high ROE driven by heavy debt is riskier than one driven by margins, so read it alongside the debt-to-equity ratio
Weak → strong
"Earn more for shareholders" → "Lift ROE from 15% to 17% within two years, owned by the CFO via margin improvement rather than added leverage".
Show all 16 Profitability KPIs

42. ROA (Return on Assets)

LaggingBetter when higherIndicates how profitable an organization is relative to its total assets.
Formula
(Net Income) / (Total Assets) = (ROA)
Example
$120,000 ÷ $1,500,000 = 8%.
What good looks like
there is no universal number — asset-heavy industries such as utilities and banks earn far lower ROA than software or services firms, so compare with industry peers and your own trend
Weak → strong
"Use our assets better" → "Raise ROA from 8% to 9% within two years, owned by the CFO via selling idle assets".

43. Return on Capital Employed

LaggingBetter when higherMeasures an organization's profitability and the efficiency with which its capital is employed.
Formula
(Earnings before interest and taxes ÷ (total assets − current liabilities)) × 100.
Example
$1,200,000 ÷ ($10,000,000 − $2,000,000) = 15%.
What good looks like
compare it with your cost of capital — U.S. listed firms averaged ~9.8% return on capital against a ~7% cost of capital in January 2026, and ROCE comfortably above that bar means capital is creating value
Weak → strong
"Use our capital better" → "Lift ROCE from 15% to 17% within two years, owned by the CFO via divesting underused assets".

44. Program Profitability

LaggingBetter when higherTracks the profitability of an individual program.
Formula
Program revenue − (direct costs + allocated overhead).
Example
$650,000 − ($480,000 + $70,000) = $100,000.
What good looks like
there is no universal number — compare programs using the same cost-allocation rules, and remember a program that loses money can still be worth keeping if it serves the mission
Weak → strong
"Make programs pay off" → "Raise the program's annual profit from $100,000 to $130,000 by next fiscal year, owned by the program director."

45. Operating Profit Margin

LaggingBetter when higherMeasures income after variable costs of production are considered.
Formula
(Operating Income) / (Net Sales) = (Operating Profit Margin)
Example
$180,000 ÷ $1,000,000 = 18%.
What good looks like
U.S. listed firms averaged a ~13% pre-tax operating margin in January 2026, but margins vary widely by industry, so compare with sector peers
Weak → strong
"Be more profitable" → "Lift operating margin from 18% to 20% by fiscal year-end, owned by the COO via process automation".

46. Net Profit Margin

LaggingBetter when higherThe percentage of an organization's revenue that is net profit.
Formula
(Net Profit) / (Revenue) = (Net Profit Margin)
Example
$120,000 ÷ $1,000,000 = 12%.
What good looks like
~10% net margin is broadly 'good' and 20%+ is excellent — but it is highly sector-dependent (software runs far higher than grocery)
Weak → strong
"We're profitable overall" → "Expand net profit margin from 12% to 15% within the fiscal year by reducing overhead, owned by the CFO."

47. Net Profit

LaggingBetter when higherThe amount of money an organization makes after taking out all expenses and other costs.
Formula
(Income) - (Expenses) = (Net Profit)
Example
$2,500,000 − $2,200,000 = $300,000.
What good looks like
U.S. public companies keep ~10% of revenue as net profit on average, but it is highly sector-dependent, so compare your margin with peers and your own trend
Weak → strong
"Make more profit" → "Increase net profit from $300,000 to $350,000 this fiscal year through pricing and cost reviews, owned by the CFO."

48. Gross Profit Margin

LaggingBetter when higherThe percentage of revenue that is profit after the cost of production and sales is considered.
Formula
(Gross Margin) / (Revenue) = (Gross Profit Margin)
Example
(($1,000,000 − $400,000) ÷ $1,000,000) × 100 = 60%.
What good looks like
U.S. listed firms averaged ~38% gross margin in January 2026, but it varies widely by industry, so benchmark against your sector
Weak → strong
"Improve product margins" → "Raise gross margin from 60% to 63% within a year, owned by the VP of Operations via supplier renegotiation".

49. Gross Profit

LaggingBetter when higherAn organization's profit after the cost of production and sales is considered.
Formula
(Revenue) - (COGS) = (Gross Profit)
Example
$2,000,000 − $1,240,000 = $760,000.
What good looks like
U.S. public companies keep ~38% of revenue as gross profit on average, but gross margin varies hugely by sector, so benchmark against peers and your own trend
Weak → strong
"Improve margins" → "Grow gross profit from $760,000 to $840,000 this fiscal year by renegotiating supplier costs, owned by the VP of Operations."

50. Economic Value Added (EVA)

LaggingBetter when higherAn estimate of an organization's economic profit.
Formula
Net operating profit after tax − (invested capital × cost of capital).
Example
$900,000 − ($8,000,000 × 8%) = $260,000.
What good looks like
positive EVA means returns beat the cost of capital; across U.S. listed firms in January 2026, return on capital averaged ~9.8% against a ~7% cost of capital, so the typical spread is a few points
Weak → strong
"Create more value" → "Grow EVA from $260,000 to $400,000 within two years, owned by the CFO via capital discipline on new projects".

51. Average Capital Employed

LaggingShows profitability compared to investments made in new capital.
Formula
(Opening capital employed + closing capital employed) ÷ 2.
Example
($4,600,000 + $5,400,000) ÷ 2 = $5,000,000.
What good looks like
there is no good level on its own — it is the denominator for return on capital employed, so judge it by the return it earns and keep it growing slower than operating profit
Weak → strong
"Use our capital better" → "Hold average capital employed near $5,000,000 while growing EBIT 10% this fiscal year, owned by the CFO."

52. Customer Lifetime Value

LaggingBetter when higherThe net profit an organization anticipates gaining from a customer over the entire length of a relationship helps to determine the costs/benefits of acquisition efforts.
Formula
Average order value × purchase frequency × customer lifespan × gross margin.
Example
$85 × 4 orders/yr × 3 yrs × 50% = $510.
What good looks like
there is no universal number — read it against customer acquisition cost, and grow it through repeat purchases and retention rather than discounts that cut margin
Weak → strong
"Make customers worth more" → "Raise CLV from $510 to $560 within a year, owned by the CRM lead via a loyalty program that lifts orders from 4 to 4.4 a year".

53. (Customer Lifetime Value) / (Customer Acquisition Cost)

LaggingBetter when in target rangeThe ratio of customer lifetime value to customer acquisition cost should ideally be greater than one, as a customer is not profitable if the cost to acquire is greater than the profit they will bring to a company.
Formula
(Net Expected Lifetime Profit from Customer) / (Cost to Acquire Customer)
Example
$18,000 ÷ $3,000 = 6.0:1.
What good looks like
3:1 is the widely cited healthy target — below 1:1 you lose money on every customer, while above ~5:1 can mean you're under-investing in growth
Weak → strong
"Our customers are worth more than they cost to win" → "Hold blended LTV:CAC at or above 3:1 while scaling spend 20%, reviewed monthly by RevOps."

54. Human Capital Value Added (HCVA)

LaggingBetter when higherBy taking all non-employee related costs away from the revenue and dividing the result by the number of full-time employees, one can deduce how profitable the average worker in an organization is.
Formula
([Revenue] - [Non-Employee-Related Costs]) / (Number of Full-Time Employees) = (HCVA)
Example
($10,000,000 − $6,000,000) ÷ 50 = $80,000.
What good looks like
there is no universal number — compare it with your own trend and with peers in the same industry, and make sure gains come from more value per employee rather than understaffing
Weak → strong
"Get more from our people" → "Raise HCVA from $80,000 to $88,000 per employee within two years, owned by the CHRO via productivity and upskilling programs".

Revenue KPIs

Sales Volume

LaggingThe amount of sales in a reporting period, expressed in the number of units sold.
Formula
Sum of units sold in the period.
Example
4,200 + 3,800 + 4,000 = 12,000 units.
What good looks like
there is no universal number — track it against your own prior periods and plan, and read it alongside price and margin so volume growth is not bought with discounts
Weak → strong
"Sell more units" → "Grow quarterly sales volume from 12,000 to 13,500 units by Q4, owned by the VP of Sales via new distribution channels".

Sales Forecast Accuracy

LaggingBetter when higherThe proximity of the forecasted quantity of sales to the actual quantity of sales.
Formula
(1 − |actual sales − forecast sales| ÷ actual sales) × 100.
Example
(1 − |$1,000,000 − $920,000| ÷ $1,000,000) × 100 = 92%.
What good looks like
there is no universal number, and fewer than half (45%) of sales leaders and sellers have high confidence in their forecast accuracy, so track how close forecasts land to actuals against your own baseline
Weak → strong
"Forecast better" → "Raise quarterly forecast accuracy from 92% to 95% within one year, owned by the RevOps lead via weekly pipeline inspection".

ROI of Research & Development

LaggingBetter when higherThe revenue generated by investing money into research and development.
Formula
([Gain from Investment] - [Cost of Investment]) / (Cost of Investment) = (ROI of Research & Development)
Example
($2,500,000 − $1,000,000) ÷ $1,000,000 = 150%.
What good looks like
there is no universal number — R&D returns lag spending by years and vary widely, so measure each project cohort over its full payback window and compare with your own hurdle rate
Weak → strong
"Make R&D pay" → "Raise R&D ROI from 150% to 180% for the next project portfolio, owned by the VP of R&D via stage-gate kill decisions".
Show all 14 Revenue KPIs

Revenue per Full-Time Employee (FTE)

LaggingBetter when higherDemonstrates how expensive an organization is to run.
Formula
(Revenue) / (Number of FTE) = (Revenue per FTE)
Example
$40,000,000 ÷ 200 employees = $200,000.
What good looks like
there is no universal number — it swings widely by industry and business model, so compare it with direct peers and your own trend, and watch it alongside margin and service quality
Weak → strong
"Be more productive" → "Grow revenue per employee from $200,000 to $220,000 by next fiscal year, owned by the COO via process automation".

Revenue Growth Rate

LaggingBetter when higherThe rate at which an organization's income is increasing.
Formula
([Current Revenue] - [Past Revenue]) / (Past Revenue) = (Revenue Growth Rate)
Example
(($1,200,000 − $1,000,000) ÷ $1,000,000) × 100 = 20%.
What good looks like
there is no universal number — compare growth with your market's growth and with inflation, since growth below either means losing share or shrinking in real terms
Weak → strong
"Grow faster" → "Sustain revenue growth of 20% or more for the next two fiscal years, owned by the Chief Revenue Officer via new-market expansion".

Revenue

LaggingBetter when higherThe total income an organization receives.
Formula
(Price of Goods) x (Number of Goods Sold) = (Revenue)
Example
$50 × 20,000 = $1,000,000.
What good looks like
there is no universal number — judge it against plan, prior periods, and market growth, and read it alongside margin so growth stays profitable
Weak → strong
"Grow the business" → "Grow annual revenue from $1,000,000 to $1,200,000 by fiscal year-end, owned by the Chief Revenue Officer".

Operating Income

LaggingBetter when higherThe profit from operations after removing operating expenses.
Formula
(Gross Income) - (Operating Expenses) - (Depreciation & Amortization) = (Operating Income)
Example
$800,000 − $450,000 − $50,000 = $300,000.
What good looks like
U.S. public companies earn operating income of ~13% of revenue on average, but margins vary widely by sector, so benchmark against peers and your own trend
Weak → strong
"Make operations more profitable" → "Grow operating income from $300,000 to $340,000 within the fiscal year through process cost reductions, owned by the COO."

Net Income

LaggingBetter when higherThe amount of sales after subtracting discounts, returns, and damaged goods.
Formula
(Revenue) - (Expenses) = (Net Income)
Example
$1,000,000 − $880,000 = $120,000.
What good looks like
U.S. public companies keep ~10% of revenue as net income on average, though it swings widely by sector, so judge it as a margin against your peers
Weak → strong
"Be more profitable" → "Grow net income from $120,000 to $150,000 within the fiscal year by reducing overhead, owned by the CFO."

EBT (Earning Before Taxes)

LaggingBetter when higherShows how much an organization has made after considering COGS, interest, and SG&A expenses, before taxes are subtracted.
Formula
(Revenue) - (COGS) - (Interest) - (SG&A) = (EBT)
Example
$2,000,000 − $1,200,000 − $50,000 − $450,000 = $300,000.
What good looks like
there is no universal number — track it as a share of revenue against your own trend and peers, and watch whether rising interest cost is eating the gap between operating and pre-tax earnings
Weak → strong
"Be more profitable" → "Raise EBT from $300,000 to $350,000 this fiscal year by refinancing debt and holding SG&A flat, owned by the CFO."

EBITDA

LaggingBetter when higher(Earnings Before Interest, Taxes, Depreciation & Amortization): Measures revenue after expenses are considered and interest, taxes, depreciation and amortization are excluded.
Formula
(Revenue) - (Expenses Excluding Interest, Tax, Depreciation & Amortization) = (EBITDA)
Example
$120,000 + $30,000 + $40,000 + $50,000 + $10,000 = $250,000.
What good looks like
read it as a share of revenue — EBITDA averaged ~17% of sales across U.S. listed firms in January 2026, with wide swings by industry
Weak → strong
"Improve earnings" → "Grow EBITDA from $250,000 to $300,000 this fiscal year, owned by the CFO via pricing and cost discipline".

Average Annual Sales Volume per Customer

LaggingBetter when higherThis is the average amount of sales per customer, expressed in currency.
Formula
(Total Sales) / (Total Customers) = (Average Annual Sales Volume per Customer)
Example
$4,800,000 ÷ 1,200 customers = $4,000.
What good looks like
there is no universal number — it depends on your pricing and customer mix, so grow it against your own baseline and check whether a few large accounts are carrying the average
Weak → strong
"Sell more to each customer" → "Grow average annual sales per customer from $4,000 to $4,400 within the fiscal year through cross-sell, owned by the VP of Sales."

Asset Utilization

LaggingBetter when higherTotal revenue earned for every dollar of assets an organization owns.
Formula
(Total Revenue) / (Total Assets) = (Asset Utilization)
Example
$8,000,000 ÷ $10,000,000 = 0.8.
What good looks like
there is no universal number — asset-heavy sectors such as utilities run far lower than retailers or service firms, so compare it with peers and your own trend
Weak → strong
"Get more from our assets" → "Raise asset utilization from 0.8 to 0.9 by next fiscal year by selling idle equipment, owned by the CFO."

Share of Wallet

LaggingBetter when higherMeasures the portion of a customer's total spending that goes toward the company's products and services.
Formula
(Customer spend with you ÷ customer's total category spend) × 100.
Example
$30,000 ÷ $120,000 = 25%.
What good looks like
there is no universal number — total category spend is usually estimated from surveys or account plans, so focus on growing share within your largest accounts against your own baseline
Weak → strong
"Win more of each customer's business" → "Grow share of wallet in the top 50 accounts from 25% to 30% within a year, owned by the account management lead".

Earnings Before Interest and Taxes (EBIT)

LaggingBetter when higherAn indicator of a company's profitability with expenses removed and interest and tax excluded.
Formula
(Revenue) - (COGS) - (Operating Expenses) = (EBIT)
Example
$2,000,000 − $1,200,000 − $500,000 = $300,000.
What good looks like
across U.S. public companies, operating earnings average ~13% of revenue, though railroads and utilities run far higher than trucking or autos, so compare within your sector
Weak → strong
"Grow earnings" → "Raise EBIT from $300,000 to $360,000 this fiscal year by trimming operating expenses, owned by the CFO."
FAQ on KPIs: what they are, what a SMART KPI is, why KPIs matter, what to include in a KPI report and how to pick KPIs

Common questions

What are financial KPIs?

Financial Key Performance Indicators (KPIs) are specific metrics used to measure and track a company's financial performance and health. They provide insights into various aspects of the business, such as profitability, liquidity, efficiency, and solvency.

How do you measure financial KPIs?

Financial KPIs are typically measured using quantitative data derived from the company's financial statements, including the income statement, balance sheet, and cash flow statement. Calculations may involve simple formulas (e.g., profit margin = net income / revenue) or more complex financial ratios (e.g., return on equity, current ratio). The frequency of measurement depends on the KPI and the company's needs, ranging from daily to annually.

How do you create a financial KPI dashboard in Excel?

To create a financial KPI dashboard in Excel, follow these steps:

  • Identify Key Metrics: Determine the most relevant financial KPIs for your business.
  • Gather Data: Collect the necessary data from financial statements or other sources.
  • Create Tables/Charts: Use Excel's charting tools to visualize the data (e.g., line graphs for trends, bar charts for comparisons).
  • Organize Layout: Arrange the tables and charts in a clear and intuitive dashboard format.
  • Add Context: Include labels, titles, and brief explanations to help users interpret the data.
  • Update Regularly: Ensure the dashboard is updated with the latest data to maintain its relevance.

What is a financial KPI?

A financial KPI is a specific metric that measures a company's financial performance. Examples include:

  • Revenue: Total income generated from sales or services.
  • Net Profit Margin: Percentage of revenue remaining after all expenses are deducted.
  • Return on Investment (ROI): Measures the profitability of an investment relative to its cost.
  • Debt-to-Equity Ratio: Indicates the proportion of debt used to finance a company's assets.
  • Operating Cash Flow: Cash generated from a company's core business operations.

What is a non-financial KPI?

Non-financial KPIs are metrics that measure aspects of a company's performance not directly related to finances. They can be quantitative (e.g., customer satisfaction rating, employee turnover rate) or qualitative (e.g., brand reputation, employee morale). Non-financial KPIs often provide insights into the drivers of financial performance and help organizations understand their overall health and success.

Dylan Miyake
Dylan Miyake
Co-Founder & Code Geek

Co-Founder and Managing Partner of ClearPoint. Former VP at Kaplan and Norton's Balanced Scorecard Collaborative.

Dylan Miyake is the co-founder of ClearPoint Strategy, a B2B SaaS platform that empowers organizations to execute strategic plans with precision. A Bowdoin College and MIT Sloan alumnus, he worked with Drs. Robert Kaplan and David Norton — the pioneers behind the Balanced Scorecard — from 1997, and served as Vice President and an executive team member at the Balanced Scorecard Collaborative, their firm. A self-described "tech geek," Dylan bridges technology and management, embedding his passion into ClearPoint’s code to ensure the software delivers flexible, approachable solutions for complex enterprise challenges.