Key Performance Indicators - KPI


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)".


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BREAKING DOWN '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.

  1. Revenue

    The amount of money that a company actually receives during a ...
  2. Profit Margin

    Profit margin is part of a category of profitability ratios calculated ...
  3. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  4. Same-Store Sales

    A statistic used in retail industry analysis that compares the ...
  5. Operating Income

    The amount of profit realized from a business's operations after ...
  6. Sales Per Share

    A ratio that computes the total revenue earned per share over ...
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