GITNUX MARKETDATA REPORT 2023
Must-Know Corporate Metrics
Highlights: The Most Important Corporate Metrics
- 1. Revenue
- 2. Gross Profit Margin
- 3. Net Profit Margin
- 4. Operating Income
- 5. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
- 6. Return on Equity (ROE)
- 7. Return on Assets (ROA)
- 8. Debt-to-Equity Ratio
- 9. Current Ratio
- 10. Quick Ratio
- 11. Inventory Turnover
- 12. Days Sales Outstanding (DSO)
- 13. Customer Lifetime Value (CLV)
- 14. Customer Acquisition Cost (CAC)
- 15. Employee Turnover Rate
- 16. Employee Productivity
- 17. Net Promoter Score (NPS)
- 18. Total Shareholder Return (TSR)
Table of Contents
Corporate Metrics: Our Guide
Keeping track of corporate metrics is essential for understanding the overall health of your business. This updated report delves into the must-know metrics for corporate success in today’s rapidly evolving business environment. Gain data-driven insights into where to steer your company for growth and sustainability.
The total amount of money a company generates from sales of products or services before expenses are deducted.
Gross Profit Margin
Gross profit margin measures a company’s efficiency in turning revenue into profit.
Net Profit Margin
Net profit margin measures a company’s overall profitability.
Operating profit measures the financial health of a company’s core operations.
EBITDA (EBIT + D&A)
A financial metric that measures a company’s operational performance by excluding non-cash expenses and financing costs, providing a snapshot of its profitability.
Return On Equity (ROE)
The percentage of net income as a proportion of shareholders’ equity. It is used to measure how effectively a company uses equity from shareholders to generate profits.
Return On Assets (ROA)
The percentage of net income as a proportion of total assets. It indicates how efficiently a company uses its assets to generate profitability.
Debt-to-equity ratio measures a company’s reliance on debt to finance its operations.
A liquidity ratio that measures a company’s ability to pay short- term debts or meet immediate financial obligations, calculated by dividing current assets by current liabilities.
A liquidity ratio similar to the current ratio but excludes inventory from current assets. It assesses a company’s ability to meet short-term obligations using its most liquid assets.
The number of times a company sell its inventory during a specific period. It measures how efficiently a company manages its stock and generates sales.
Days Sales Outstanding (DSO)
Days Sales Outstanding (DSO) measures the average number of days it takes a company to collect payments from customers.
Customer Lifetime Value (CLV)
The estimated net profit attributed to the entire future relationship with a customer. It helps to determine the worth of a customer to the company over time.
Customer Acquisition Cost (CAC)
Customer acquisition cost (CAC) measures the total cost of acquiring a new customer.
Employee Turnover Rate
Employee turnover rate measures the percentage of employees who leave a company within a specific period.
Frequently Asked Questions
What are corporate metrics and why are they important?
How do companies select the most appropriate corporate metrics to track?
Can you give examples of some common corporate metrics across various departments?
How often should corporate metrics be monitored and analyzed?
What challenges do companies face when using corporate metrics and how can they overcome them?
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.