ECONOMICS

Detailed explanation-1: -What Is a Financial KPI? Financial KPIs are high-level measures of profits, revenue, expenses or other financial outcomes that specifically focus on relationships derived from accounting data-and they’re almost always tied to a specific financial value or ratio.

Detailed explanation-2: -The Net Profit Margin KPI measures how effective your business is at generating profit on each dollar of revenue you bring in. This financial KPI is a measure of the profitability of your business and is instrumental in making long-and short-term financial decisions.

Detailed explanation-3: -Types of KPIs Quantitative indicators that can be presented with a number. Qualitative indicators that can’t be presented as a number. Leading indicators that can predict the outcome of a process.

Detailed explanation-4: -Revenue per Employee is a financial KPI often used to compare companies. It represents the amount of revenue generated per employee and is sometimes seen as a way to show how successful a business is at using their resources.