KPIs can help you a lot in life Use these KPIs to make better financial and investment decisions 1️⃣ Accounting KPIs Accounting key performance indicators (KPIs) are essential metrics that help evaluate the financial health and performance of a company. They include indicators such as profit margin, which shows how much profit a company makes on its revenue, and accounts receivable turnover, which measures how quickly a company collects money owed by customers. 2️⃣ Cash KPIs Cash KPIs are crucial metrics for monitoring a company's cash flow and liquidity. Common cash KPIs include the cash ratio, which assesses a company's ability to cover short-term liabilities with its cash, and the operating cash flow ratio, which shows the ratio of operating cash flow to Total revenue. 3️⃣ Investor KPIs Investor KPIs are metrics used by investors to evaluate the attractiveness of an investment. Key indicators include return on investment (ROI), which measures the profitability of an investment, and price-earnings ratio (P/E), which evaluates a company's share price relative to its earnings, helping investors to make informed decisions about their investments. 4️⃣ Inventory KPIs Inventory KPIs are metrics that evaluate a company's inventory management. Common inventory KPIs include inventory turns, which measures how quickly inventory is sold, and inventory carrying cost, which calculates the expenses associated with holding inventory, helping businesses optimize your stock levels and reduce costs. 5️⃣ Growth KPIs Growth KPIs are metrics used to measure the expansion and development of a company. These include revenue growth rate, which quantifies the increase in sales over a specific period, and customer acquisition rate, which measures the pace at which a company gains new customers, helping to track growth. progress and success in business expansion. Financial Modeling World Cup Credits __ 🤔That's all for today. What KPI would you add? Join the discussion in the comments 👇 __ 📚 Register here if you want to receive it along with my free Financial Analysis course: https://lnkd.in/eb6UJGXx
