There are a wide range of financial and non-financial KPIs that can be relevant to businesses and some examples are given below. They should always be linked to the business model and cover areas which the directors judge are the most effective in assessing progress against objectives or strategies.
Examples of financial KPIs
These can include:
- EBITDA
- Gross profit margin
- Return on capital employed
- Total shareholder return
- Sales per square foot
- Capital expenditure as % of revenue
- Value of order book/pipeline sales
- Operating cash flows
Examples of non-financial KPIs
These can include:
- Customer
- Net promoter score
- Customer retention
- Number of complaints
- Employee
- Employee engagement
- % women in leadership roles
- Employee turnover
- Operations
- Number of H&S incidents
- Product availability
- CSR
- Carbon emissions
- Number of volunteered hours
- % of waste recycled
Case study extract
KPIs
| 2019 | 2018 | |
|---|---|---|
| Sales | £31m |
£27m |
| Hotel occupancy |
67% |
88% |
Comments
Companies often just give KPIs on their own without any explanation. This isn’t sufficient to meet the legal requirement to provide an analysis of the business using KPIs.
Improved version
During the year, the company signed up to a discount partner who promotes last minute availability at discounted rates. This has increased the room occupancy from 67% in 2018 to 88% in 2019. Although the rate per night offered through this partner is lower than the standard rate, it has led to an overall increase in room revenue of 15% in the year (2019 - £31m; 2018 - £27m).