key finance metrics:
1. Revenue:
a. Definition: Total income generated from sales of
goods or services.
b. Calculation: Revenue = Quantity Sold × Price per
Unit
2. Net Profit:
a. Definition: Total revenue minus total expenses.
b. Calculation: Net Profit = Revenue - Total Expenses
3. Gross Profit Margin:
a. Definition: Percentage of revenue that exceeds the
cost of goods sold.
b. Calculation: Gross Profit Margin = (Revenue - Cost
of Goods Sold) / Revenue × 100
4. EBITDA (Earnings Before Interest, Taxes, Depreciation,
and Amortization):*
a. Definition: Measure of operating performance,
excluding non-operating expenses.
b. Calculation: EBITDA = Net Income + Interest + Taxes
+ Depreciation + Amortization
5. Return on Equity (ROE):
a. Definition: Measures the return generated for
shareholders.
b. Calculation: ROE = Net Income / Shareholder's
Equity
6. Return on Investment (ROI):
a. Definition: Measures the return on an investment.
b. Calculation: ROI = (Net Profit / Initial Investment) ×
100
7. Working Capital:
a. Definition: Measures a company's short-term
liquidity.
b. Calculation: Working Capital = Current Assets -
Current Liabilities
8. Return on Assets (ROA):
a. Definition: Measures a company's ability to
generate profit from its assets.
b. Calculation: ROA = Net Income / Average Total
Assets
9. Inventory Turnover:
a. Definition: Measures how quickly a company sells
its inventory.
b. Calculation: Inventory Turnover = Cost of Goods
Sold / Average Inventory
10. Accounts Receivable Turnover:
a. Definition: Measures how quickly a company
collects payments from customers.
b. Calculation: AR Turnover = Revenue / Average
Accounts Receivable
11. Profit Margin:
a. Definition: Percentage of profit earned from total
revenue.
b. Calculation: Profit Margin = (Net Profit / Revenue) ×
100
12. Return on Investment in Marketing:
a. Definition: Measures the return on investment
specifically from marketing activities.
b. Calculation: ROI = (Net Profit from Marketing / Cost
of Marketing) × 100
Finance & Profitability
19. Break-even Point – Sales level where revenue
equals cost, no profit or loss.
20. Fixed Cost – Costs that don’t change with
production (e.g., rent).
21. Variable Cost – Costs that change based on
production (e.g., raw material).
22. Operating Profit – Profit from core business
operations.
23. Cash Flow – Movement of money in and out of the
business.
24. Return on Investment (ROI) – Profit as a percentage
of investment made.
25. Return on Capital Employed (ROCE) – Efficiency of
capital use in generating profit.
26. Cost of Goods Sold (COGS) – Total direct cost to
produce a product.
27. Working Capital – Cash available to run day-to-day
operations.
28. Accounts Payable – Outstanding payments to
suppliers.
29. Accounts Receivable – Pending collections from
customers.
30. Financial Year – The annual period used for
accounting and tax reporting.
Team & HR
46. KRA (Key Result Area) – Measurable job outcomes
expected from an employee.
47. KPI (Key Performance Indicator) – Metrics to track
performance.
48. Attrition – % of employees leaving the organisation.
49. Retention – Ability to keep employees over time.
50. Appraisal – Periodic employee performance
evaluation.
51. Onboarding – Process of integrating new
employees into the company.
52. Employee Productivity – Output delivered by each
employee.
53. Incentive Structure – Bonus plan to reward
employees.
54. Delegation – Assigning work to others with
authority.
55. 2nd Line Leadership – Trained team that can
operate without owner.
56. Shift Management – Scheduling of employee work
hours.
57. Training Hours – Hours spent on employee skill
development.
58. Staff Turnover Rate – Speed at which staff exits and
enters.
59. Performance Review – Formal evaluation of
employee effectiveness.
60. Manpower Planning – Planning current and future
team capacity.
Strategy & Scaling
76. Vision Statement – Long-term goal for the
company.
77. Mission Statement – Purpose and daily direction of
the company.
78. Business Model – How the business generates value
and profit.
79. P&L (Profit and Loss Statement) – Summary of
income and expenses.
80. SWOT Analysis – Strengths, Weaknesses,
Opportunities, Threats review.
81. Franchise – Business model to expand using
partners.
82. Branch Expansion – Growing to new locations.
83. Licensing – Allowing others to use your brand/IP
legally.
84. Scale vs Growth – Scale = More output with same
resources; Growth = more revenue/cost.
85. Automation – Using systems to reduce manual
work.
86. Delegation Matrix – Who is
responsible/accountable for each task.
87. Market Share – % share of total market your
business holds.
88. Market Penetration – Depth of your brand in
current market.
89. Business Dashboard – Visual tool to track key
business metrics.
90. Unit Economics – Profit/loss per unit sold.
Tech, Automation & Systems
91. ERP (Enterprise Resource Planning) – Software to
manage business processes.
92. POS (Point of Sale) – Billing and sales processing
system.
93. WhatsApp Automation – Sending auto messages to
leads/customers.
94. Google My Business – Free listing tool to improve
online presence.
95. Zapier – Tool to connect different apps and
automate workflows.
96. Email Sequence – Pre-written emails sent
automatically.
97. Integration – Connecting systems to work together
smoothly.
98. Chatbot – Automated customer chat system.
99. KPI Dashboard – Software or sheet to visually track
key performance metrics.
100. Systemisation – Converting chaotic work into
repeatable, scalable systems.
