Today more than ever, measuring the competitiveness of a company is postulated as a critical aspect to approach the future and maintain a sustainable position in the market. It is not a trivial matter at all. We are witnessing a time when most statistics related to business mortality are clear in their conclusions: a high percentage of companies cease their activity before the end of the decade.
Business metrics, also called “key performance indicators” (KPIs), show measurable value for the progress of a company's business objectives. Business metrics also indicate whether a company has achieved its goals within a planned time frame.
Examples of business metrics:
- Sales revenue: Revenue – Cost of undelivered goods
- Net profit margin: Income – Sales costs
- Gross margin: Total sales revenue, subtracting the cost of goods sold, then divided by total sales revenue
- Recurring periodic income: Company's revenuethat is expected to continue in the future.