KPI |
What it Shows |
Current Ratio |
Company's ability to pay its bills |
Quick Ratio |
Company's ability to pay bills from cash and accounts receivable |
Debt-to-Worth |
Relative amount of debt compared to overall company worth |
Gross Profit Percentage |
Percentage of sales left over after all cost of sales to cover remaining expenses and profit |
Net Income Percent |
Percentage of sales left over after all costs which can be used to reduce debt, invest in the business and pay the owners |
Sales to Assets |
Sales activity generated by the assets of the company |
Return on Assets |
Net income before tax compared to the assets of the company |
Return on Investment |
Net income before tax compared to the investment by the owners |
Inventory Turnover |
Number of times each year the inventory is replaced |
Inventory Turn Days |
Average number of days inventory is kept on hand |
Accounts Receivable Turnover |
Number of times each year the receivables are collected |
Accounts Receivable Turn Days |
Average number of days it takes to collect receivables |
Accounts Payable Turnover |
Number of times each year bills are paid |
Accounts Payable Turnover |
Average number of days it takes to pay bills |
Gross Margin Return on Inventory |
Abilty of the companyt to turn inventory into cash above the cost of inventory |
