Identifying the optimal Finance Team metrics can be challenging, especially when everyday tasks consume your time. To help you, we've assembled a list of examples to ignite your creativity.
Copy these examples into your preferred app, or you can also use Tability to keep yourself accountable.
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While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI metrics generator below to generate your own strategies.
Calculated by dividing net profit by total revenue, expressed as a percentage. It shows how much profit a company makes for each dollar of revenue.
What good looks like for this metric: 10-20%
Ideas to improve this metric
Reduce operational costs
Increase product prices
Enhance sales volume
Improve customer retention
Optimise supply chain
2. Return on Investment (ROI)
Determines profitability by comparing the gain from an investment to its cost, calculated as (Net Profit / Cost of Investment) x 100.
What good looks like for this metric: 15-25%
Ideas to improve this metric
Choose higher-yield investments
Reduce investment costs
Increase revenue from investments
Enhance marketing strategies
Improve financial forecasting
3. Gross Profit Margin
Calculated by subtracting cost of goods sold (COGS) from revenue and dividing by revenue, expressed as a percentage, indicating the efficiency of production and pricing.
What good looks like for this metric: 20-40%
Ideas to improve this metric
Negotiate better supplier terms
Increase production efficiency
Enhance sales and pricing strategy
Reduce waste in production
Control direct labour costs
4. Operating Profit Margin
Measures what proportion of revenue is left as profit after accounting for operating expenses, calculated by dividing operating profit by total revenue.
What good looks like for this metric: 10-15%
Ideas to improve this metric
Streamline operational processes
Reduce administrative expenses
Enhance revenue streams
Focus on core business activities
Minimise utility and overhead costs
5. Expense Ratio
Expresses the percentage of total expenses to total revenue, highlighting cost management efficiency.
Operating profit margin is calculated as the percentage of earnings before interest and taxes (EBIT) over total revenue. It measures the efficiency of the clinic in managing its operations and costs relative to its revenue.
What good looks like for this metric: Typical benchmark values range from 10% to 15%
Ideas to improve this metric
Increase service efficiency to reduce costs
Negotiate better terms with suppliers
Optimise staff scheduling to avoid overtime
Enhance service pricing based on value provided
Minimise administrative expenses
2. Revenue Growth Rate
The rate at which the clinic's revenue is increasing over a specific period. This shows how well the clinic is performing in expanding its client base and/or increasing service fees.
What good looks like for this metric: Healthy growth rates are typically between 5% to 10% annually
Ideas to improve this metric
Enhance marketing strategies to attract more clients
Extend service offerings to meet client demand
Improve client retention through excellent service
Pursue partnerships with schools or local health services
Offer promotions or discounts for referrals
3. Financial Close Accuracy
Measures the precision of financial statements in reflecting the clinic's financial status, essential for decision making and regulatory compliance.
What good looks like for this metric: Strive for at least 99% accuracy
Ideas to improve this metric
Implement robust accounting software
Regularly train staff on accounting standards
Conduct periodic audits
Maintain updated documentation for all transactions
Streamline processes for financial data collection
4. Time to Close Financials
The duration needed to finalise the clinic's financial statements each month or quarter. Efficient close time helps in timely management decisions.
What good looks like for this metric: Best-in-class companies aim for 5 days or less
Ideas to improve this metric
Standardise closing processes
Automate data entry and reconciliation tasks
Allocate clear responsibilities to the finance team
Prepare preliminary reports before closing period
Conduct regular process review meetings
5. Resource Utilisation
Assesses the degree to which the clinic's resources, including staff and materials, are effectively used to reach financial goals.
What good looks like for this metric: Target above 85% resource utilisation
Ideas to improve this metric
Regularly assess and adjust resource allocations
Cross-train staff to manage workload fluctuations
Monitor resource usage through management software
Set clear KPIs for each department
Implement a lean management approach to minimise waste
Percentage increase in revenue over a specified period, calculated as (Current Period Revenue - Previous Period Revenue) / Previous Period Revenue * 100
What good looks like for this metric: 5-10% annually for stable growth
Ideas to improve this metric
Enhance sales team training
Expand product/service offerings
Improve market analysis for new opportunities
Increase customer referrals and testimonials
Implement targeted marketing strategies
2. Customer Acquisition Cost (CAC)
Total cost of acquiring a new customer, calculated as total sales and marketing expense / number of new customers acquired
What good looks like for this metric: Typically $1 to $300 per customer
Ideas to improve this metric
Optimize marketing channels for efficiency
Improve targeting of ideal customer profiles
Enhance website conversion rates
Leverage partnerships and collaborations
Increase use of digital marketing tools
3. Customer Retention Rate
Percentage of customers retained over a given period, calculated as ((End of Period Customers - New Customers) / Start of Period Customers) * 100
What good looks like for this metric: 70-90% depending on the industry
Ideas to improve this metric
Improve product/service quality
Enhance customer support experience
Develop customer loyalty programmes
Regularly gather and act on customer feedback
Create engaging communication and content
4. Net Revenue Retention (NRR)
Percentage of recurring revenue retained from existing customers, including upgrades/downgrades, calculated as (Starting Revenue + Expansion Revenue - Churn) / Starting Revenue * 100
What good looks like for this metric: Over 100% indicates good growth
Ideas to improve this metric
Upsell existing customers to higher-tier plans
Introduce new features to drive value
Regularly communicate new offerings to customers
Reduce churn by addressing common concerns
Conduct regular account reviews with key clients
5. Profit Margin
Percentage of revenue that exceeds total costs, calculated as (Net Income / Revenue) * 100
What good looks like for this metric: 10-20% is common in the industry
Having a plan is one thing, sticking to it is another.
Don't fall into the set-and-forget trap. It is important to adopt a weekly check-in process to keep your strategy agile – otherwise this is nothing more than a reporting exercise.
A tool like Tability can also help you by combining AI and goal-setting to keep you on track.
Tability's check-ins will save you hours and increase transparency
The best metrics for Steriliser Load Compliance