Key Performance Indicators (KPI)
A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals. KPIs vary between companies and industries, depending on their priorities or performance criteria. Also referred to as "key success indicators (KSI)". Investopedia Says:
A company must establish its strategic and operational goals and then choose the KPIs which best reflect those goals. For example, if a software company's goal is to have the fastest growth in its industry, its main performance indicator may be the measure of revenue growth year-on-year. A company's KPIs will be stated in its annual report. Also, KPIs will often be industry-wide standards, like "same store sales", in the retail sector. Related Terms:
Earnings per Share - EPS
Market Share
Operating Income
Profit
Profit Margin
Revenue
Revenue Generating Unit - RGU
Revenue Per Employee
Sales Per Share
Same Store Sales |