Key Performance Indicators - KPI

AAA

DEFINITION of '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 EXPLAINS 'Key Performance Indicators - KPI'

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
  1. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  2. Profit Margin

    A ratio of profitability calculated as net income divided by ...
  3. Profit

    A financial benefit that is realized when the amount of revenue ...
  4. Revenue Per Employee

    An important ratio that looks at a company's sales in relation ...
  5. Market Share

    The percentage of an industry or market's total sales that is ...
  6. Revenue Generating Unit - RGU

    An individual service subscriber who generates recurring revenue ...
Related Articles
  1. Investing Basics

    Industry Handbook

  2. Markets

    Introduction To Fundamental Analysis

  3. Investing

    What are Business Ethics?

  4. What is globalization?
    Investing

    What is Globalization?

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center