GITNUX MARKETDATA REPORT 2023
Must-Know Company Performance Metrics
Highlights: The Most Important Company Performance Metrics
- 1. Revenue
- 2. Gross Profit Margin
- 3. Net Income
- 4. Operating Margin
- 5. Earnings Per Share (EPS)
- 6. Return on Investment (ROI)
- 7. Return on Equity (ROE)
- 8. Return on Assets (ROA)
- 9. Current Ratio
- 10. Quick Ratio
- 11. Debt-to-Equity Ratio
- 12. Inventory Turnover
- 13. Accounts Receivable Turnover
- 14. Customer Retention Rate
- 15. Employee Turnover Rate
- 16. Customer Acquisition Cost (CAC)
- 17. Lifetime Value of a Customer (LTV)
- 18. Churn Rate
- 19. Net Promoter Score (NPS)
- 20. Market Share
Table of Contents
Company Performance Metrics: Our Guide
In the evolving landscape of business, a clear understanding of your company’s performance metrics is crucial to your success. Our latest updated report details pivotal metrics that you simply cannot ignore. Unlock the secrets to improving operational efficiency, driving growth, and boosting profitability with our in-depth guide on must-know company performance metrics.
The total amount of money a company generates by selling its products or services.
Gross Profit Margin
Profit margin is the percentage difference between revenue and cost of goods sold, reflecting production efficiency and pricing effectiveness.
The company’s total profit or loss after deducting all expenses, including taxes and interest.
The ratio of operating income to revenue, expressed as a percentage. It measures the profitability of the company’s core business operations, excluding interest and taxes.
Earnings Per Share (EPS)
The company’s net income divided by the number of outstanding shares of common stock. This metric indicates the profitability of a company on a per-share basis.
Return On Investment (RO!)
A ratio that measures the gain or loss from an investment relative to its cost. It indicates the efficiency of the company’s investments.
Return On Equity (ROE)
The ratio of net income to shareholders’ equity, expressed as a percentage. It measures the profitability of a company from the shareholders’ perspective.
Return On Assets (ROA)
The ratio of net income to total assets, expressed as a percentage. It indicates how efficiently the company uses its assets to generate profits.
A liquidity ratio comparing a company’s current assets to its current liabilities. It measures the ability of a company to pay its short-term debts.
The quick ratio, or acid-test ratio, compares a company’s most liquid assets to its current liabilities, assessing short-term financial health.
A solvency ratio that compares a company’s total debt to its shareholders’ equity. It reflects the company’s financial leverage and risk.
Inventory turnover measures how often inventory is sold and replaced, indicating efficient inventory management and product demand.
Accounts Receivable Turnover
A ratio that measures how efficiently a company collects payments from its customers. Higher turnover indicates faster collection of outstanding invoices.
Customer Retention Rate
The percentage of customers that continue to do business with a company over a specific period. Higher retention rates indicate higher customer satisfaction and loyalty.
Employee Turnover Rate
The rate at which employees leave a company within a specific period. High employee turnover can indicate low employee satisfaction or an unhealthy work environment.
Frequently Asked Questions
What are company performance metrics and why do businesses use them?
Which financial metrics are commonly used to assess a company's performance?
How do non-financial metrics play a role in evaluating company performance?
How can key performance indicators (KPIs) be used to improve a company's performance?
How should a company select the most appropriate performance metrics for its specific needs?
How we write these articles
We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly. See our Editorial Guidelines.