The most Used Financial KPIs

Financial key performance indicators (KPIs) are metrics used to measure the financial performance
and health of a company. Here are 40 of the most commonly used financial KPIs:

Revenue: The total amount of money a company brings in from its sales or services.

Gross profit margin: The percentage of revenue that remains after subtracting the cost of goods
sold.

Net income: A company's total revenue minus expenses.

Earnings per share (EPS): A company's net income divided by the number of outstanding shares of
stock.

Return on assets (ROA): A measure of how effectively a company is using its assets to generate
profit.

Return on equity (ROE): A measure of how effectively a company is using its shareholders' equity
to generate profit.

Return on investment (ROI): A measure of the profitability of an investment.

Operating profit margin: The percentage of revenue that remains after subtracting operating
expenses.

Cash flow: The amount of cash a company generates from its operations.

Current ratio: A measure of a company's liquidity, calculated as current assets divided by current
liabilities.

Quick ratio: A measure of a company's liquidity, calculated as current assets minus inventory
divided by current liabilities.

Debt-to-equity ratio: A measure of a company's financial leverage, calculated as total liabilities

divided by shareholders' equity.

Interest coverage ratio: A measure of a company's ability to pay its interest expenses, calculated as
earnings before interest and taxes divided by interest expense.

Asset turnover ratio: A measure of how efficiently a company is using its assets to generate revenue,
calculated as revenue divided by total assets.

Gross margin return on investment (GMROI): A measure of a company's profitability, calculated as

gross margin divided by the cost of goods sold.

Inventory turnover: A measure of a company's inventory management efficiency, calculated as cost

of goods sold divided by average inventory.

Accounts receivable turnover: A measure of a company's credit management efficiency, calculated

as annual credit sales divided by average accounts receivable.
Accounts payable turnover: A measure of a company's payables management efficiency, calculated
as cost of goods sold divided by average accounts payable.