When considering the profitability of your business what Key Performance Indicators (KPI) should you consider?

8 May 2016

Admin User

The KPI's that are helpful when evaluating the profitability of your business include:

1.    Revenue Growth
http://www.mcnamaraandcompany.com.au/blog/important-key-performance-indicators-for-measuring-growth-revenue-growth-rate

2.    Gross Margin Percentage
http://www.mcnamaraandcompany.com.au/key-performance-indicators

3.    Earnings Before Interest and Tax (EBIT)
http://www.mcnamaraandcompany.com.au/key-performance-indicators-kpi

4.    Net Profit Percentage.
http://www.mcnamaraandcompany.com.au/blog/one-of-the-most-important-key-performance-indicators-kpi-in-business

Compare your revenue to the previous period or against your budget.  
Consider you change in Gross Margin Parentage.  Why has this changed, is it due to an increase in costs or decrease in your prices or a mixture of both.

 

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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