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Please briefly, What are the key performance indicators ( KPIs ) to measure the achievement of financial goals?

What are the key performance indicators ( KPIs ) to measure the achievement of financial goals and measuring the degree of success achieved in?

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Question added by Rashad Moursi , Finance Director & Business Development, International Business Transformer Owners Repr. - Hotels , Investment and financial
Date Posted: 2014/04/22
Bala Choragudi
by Bala Choragudi , Sr. Quality Assurance Specialist , OQ

Before identifying the KPIs, let us understand the financial goals. Is it only profit or total earnings or total sales etc., what the organization want to achieve in terms of "financial goals". If we understand it clearly, then identifying the KPI is much more easier for you.

Tanveer Qureshi
by Tanveer Qureshi , Director , Qureshi Associates

The Key Performance Indicators (KPIs) are:

1. Earning per Share

2. Return on Investment\\

3. Net Profit.

Sherali Hajyani
by Sherali Hajyani , (ITECO) Assistant Management Accountant , Infrastructure Trading Equipment Company Ltd

Measuring financial goals is one of the easiest task as the performance and standards are both quantifiable and more of objective nature.

Most commonly used KPIs for financial performance are:

  1. Profit Margin
  2. ROCE
  3. ROI
  4. EPS

Apart for the above mentioned, management can set different indicators based on the objectives they wish to achieve.

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