Key Performance Indicator (KPI)

A Key Performance Indicator (KPI) is a measurable value that businesses use to assess their progress toward specific goals and objectives.

KPIs help track performance over time, highlight strengths and weaknesses, and support informed decision-making. In finance, common KPIs include gross margin, net profit, return on investment (ROI), and the debt-to-equity ratio.

These indicators provide insight into profitability, efficiency, and financial stability. KPIs can be tailored to different teams, departments or projects and are essential for setting benchmarks and evaluating success.

By regularly monitoring key indicators, businesses can stay aligned with their objectives, respond to challenges quickly, and adjust strategies as needed to maintain or improve performance.