What are Financial Performance metrics? Identifying the optimal Financial Performance 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.
Find Financial Performance metrics with AI 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.
Examples of Financial Performance metrics and KPIs 1. Revenue Growth Rate Measures the increase in revenue over a specific period, typically compared to the previous period or year
What good looks like for this metric: 5-10% annual increase
Ideas to improve this metric Increase marketing efforts Expand product or service offerings Enhance sales team's performance Explore new markets Improve customer retention rates 2. Expense Ratio Represents the proportion of expenses relative to total revenue, calculated as (Total Expenses / Total Revenue) x 100
What good looks like for this metric: 50-75%
Ideas to improve this metric Evaluate and reduce unnecessary expenses Negotiate better deals with suppliers Optimise operational efficiency Implement cost-saving technologies Regularly review financial statements for insights 3. Net Profit Margin Calculates the percentage of net profit generated from total revenue, found by (Net Profit / Total Revenue) x 100
What good looks like for this metric: 10-20%
Ideas to improve this metric Increase pricing without losing customers Cut down on variable costs Improve product upselling strategies Enhance productivity and workforce efficiency Review and optimise tax strategies 4. Cash Flow from Operations Evaluates the cash generated from business operations, analysing the effectiveness of the core business activities
What good looks like for this metric: Consistently positive values
Ideas to improve this metric Streamline accounts receivable processes Negotiate better payment terms with vendors Ensure accurate and timely invoicing Reduce inventory levels Evaluate and improve capital expenditure decisions 5. Return on Investment (ROI) Measures the profitability of investments, calculated by (Net Profit from Investment / Cost of Investment) x 100
What good looks like for this metric: 15-30%
Ideas to improve this metric Assess marketing campaign effectiveness Invest in high-return projects Regularly review portfolio performance Optimise resource allocation Diversify investment options
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1. Revenue Growth Rate Measures the increase in a company’s sales from one period to the next, indicative of business expansion
What good looks like for this metric: 5-10% per year
Ideas to improve this metric Expand customer base Introduce new products Enhance marketing efforts Improve customer service Increase sales of existing products 2. Profit Margin Represents the percentage of revenue that exceeds the total costs, showing how efficiently a company is running
What good looks like for this metric: 10-20% for most industries
Ideas to improve this metric Reduce cost of goods sold Negotiate better supplier rates Increase product pricing Streamline operations Decrease overhead costs 3. Return on Investment (ROI) Calculates the return on a particular investment relative to its cost, indicating profitability
What good looks like for this metric: 15-25% annually
Ideas to improve this metric Analyse investment effectiveness Reallocate resources to high ROI projects Increase efficiency in production Optimise marketing strategies Focus on high-return opportunities 4. Employee Productivity Measures the output per employee and how effectively labour is utilised
What good looks like for this metric: Varies by industry and business model
Ideas to improve this metric Provide regular training Incentivise high performance Implement productivity tools Encourage work-life balance Set clear goals and expectations 5. Customer Satisfaction Score Assesses customer satisfaction using surveys and feedback, impacting future revenue and retention
What good looks like for this metric: 70-80% positive feedback
Ideas to improve this metric Improve product quality Enhance customer service Seek regular customer feedback Implement suggestions quickly Tailor products/services to customer needs
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1. Annual Sales Volume The total quantity of plastic products sold within a year
What good looks like for this metric: 10,000 MT in 2025, increasing to 50,000 MT by 2035
Ideas to improve this metric Expand market reach through marketing Increase product quality to boost sales Enhance sales team training and incentives Identify and target key industries needing plastic Collaborate with international partners 2. Production Yield The percentage of produced items that meet quality standards
What good looks like for this metric: 95% in 2025, aiming for 99% by 2035
Ideas to improve this metric Implement quality checks at each production phase Invest in modern machinery and technology Train employees on quality control processes Conduct regular maintenance on equipment Incorporate lean manufacturing practices 3. Customer Retention Rate The percentage of customers who continue to buy over time
What good looks like for this metric: 80% in 2025, increasing to 95% by 2035
Ideas to improve this metric Enhance customer service and support Implement a loyalty program Regularly seek customer feedback for improvements Offer personalized deals and discounts Ensure high product quality and consistency 4. Cost per Metric Tonne (MT) The cost incurred to produce one metric tonne of plastic
What good looks like for this metric: 10% reduction by 2026, aiming for 20% reduction by 2035
Ideas to improve this metric Streamline procurement processes Negotiate better deals with suppliers Optimize production scheduling for efficiency Minimize waste during production Utilize energy-efficient machinery 5. Training Hours per Employee The average number of hours each employee spends in training annually
What good looks like for this metric: 20 hours in 2025, increasing to 60 hours by 2035
Ideas to improve this metric Develop a comprehensive training calendar Encourage online and external training sessions Introduce mentorship programs Link training to career development plans Utilize technology for training modules
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Tracking your Financial Performance metrics 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.
More metrics recently published We have more examples to help you below.
Planning resources OKRs are a great way to translate strategies into measurable goals. Here are a list of resources to help you adopt the OKR framework:
Tability's check-ins will save you hours and increase transparency
The best metrics for Financial Performance Assessment