Management reporting: Metrics and metric categories

Table of Contents:

• Growth

• Profitability

• Liquidity

• Solvency

• Efficiency

• Cost

• Valuation

• Cash Flow

• Coverage

• Employee

• Customer

• Operations

• Project

• Supply Chain

• Market

• Sustainable Development

• Compliance

• Risk and Return

• Investor

• Cybersecurity

Article in English

Financial ratios can be classified into several key categories, each providing unique insights into the organization's financial performance and health. Below are the main categories of management reporting:

Growth

Growth indicators are used to assess the organization's expansion and growth opportunities. Examples include:

• Revenue Growth Rate

• Earnings Per Share (EPS) Growth Rate

• Customer Acquisition Rate

• Market Share

Profitability

Profitability metrics evaluate the organization's ability to generate profit and manage costs and expenses effectively. Examples include:

• Gross Profit Margin

• Net Profit Margin

• Return on Investment (ROI)

• Return on Assets (ROA)

• Return on Equity (ROE)

Liquidity

Liquidity metrics assess the organization's ability to meet short-term financial obligations and maintain sufficient cash flow. Examples include:

• Current Ratio

• Quick Ratio

• Cash Ratio

• Operating Cash Flow Ratio

Solvency

Solvency metrics focus on the organization's long-term financial standing and its ability to meet long-term debt obligations. Examples include:

• Debt-to-Equity Ratio

• Debt Ratio

• Interest Coverage Ratio

Efficiency

Efficiency metrics measure the effectiveness of the organization's operations and resource utilization. Examples include:

• Inventory Turnover Ratio

• Accounts Receivable Turnover

• Accounts Payable Turnover

• Asset Turnover Ratio

Cost

Cost metrics evaluate the organization's cost structure and efficiency in managing expenses. Examples include:

• Cost of Goods Sold (COGS) Ratio

• Operating Expense Ratio

• Cost per Unit

• Cost of Sales

Valuation

Valuation metrics help determine the value of the organization’s shares or assets. Examples include:

• Price-to-Earnings (P/E) Ratio

• Price-to-Sales (P/S) Ratio

• Price-to-Book (P/B) Ratio

• Enterprise Value-to-EBITDA Ratio

Cash Flow

Cash flow metrics focus on the organization’s cash flow models and its ability to generate and manage cash effectively. Examples include:

• Operating Cash Flow

• Free Cash Flow

• Cash Conversion Cycle

• Cash Flow Return on Investment (CFROI)

• Overdues ratio

Coverage

Coverage metrics assess the organization’s ability to cover various financial obligations and commitments. Examples include:

• Interest Coverage Ratio

• Debt Service Coverage Ratio

• Dividend Coverage Ratio

Employee

Personnel metrics focus on the organization's performance in managing human capital and employee-related costs. Examples include:

• Employee Productivity

• Employee Turnover Rate

• Compensation Ratio

Customer

Customer metrics measure the organization's performance in managing customer relationships and satisfaction. Examples include:

• Customer Satisfaction Score (CSAT)

• Net Promoter Score (NPS)

• Customer Retention Rate

• Customer Lifetime Value (CLV)

• Customer Lifetime Value (CLTV) to Customer Acquisition Cost (CAC)

Operations

Operational metrics focus on assessing the effectiveness and impact of the organization's operations. Examples include:

• Production Yield

• Cycle Time

• Order Fulfillment Rate

• Workforce Utilization

Project

Project metrics evaluate the performance and progress of specific projects or initiatives within the organization. Examples include:

• Project Schedule Variance

• Cost Variance

• Return on Investment (ROI) for Projects

• Project Success Rate

Supply Chain

Supply chain metrics assess the effectiveness and efficiency of the organization’s supply chain operations. Examples include:

• Inventory Turnover

• Supplier On-Time Delivery Rate

• Supply Chain Cycle Time

• Perfect Order Rate

Market

Market metrics provide information on the organization's performance relative to competitors and the market. Examples include:

• Market Share

• Customer Acquisition Cost

• Customer Lifetime Value

• Brand Equity

Sustainable Development

Sustainable development metrics focus on assessing the organization’s performance in environmental, social, and governance (ESG) areas. These metrics measure the organization’s commitment to sustainable and responsible business practices. Examples include:

• Carbon Emissions

• Water Usage

• Employee Diversity and Inclusion

• Board Diversity

• Supplier Engagement

Compliance

Compliance metrics assess how well the organization adheres to legal and regulatory requirements. Examples include:

• Audit Findings and Compliance Rate

• Violation Incidents

• Data Privacy Compliance

• Whistleblower Reports

Risk and Return

Risk and return metrics evaluate the relationship between the organization’s financial risk and potential returns. Examples include:

• Beta

• Standard Deviation

• Sharpe Ratio

• Treynor Ratio

Investor

Investor metrics help assess the organization’s attractiveness as an investment opportunity. Examples include:

• Dividend Yield

• Earnings Per Share (EPS)

• Price-to-Earnings-to-Growth (PEG) Ratio

• Return on Invested Capital (ROIC)

Cybersecurity

Cybersecurity metrics focus on assessing the organization’s information security posture and its ability to protect sensitive data and systems. Examples include:

• Number of Security Incidents

• Mean Time to Detect (MTTD)

• Mean Time to Respond (MTTR)

• Security Compliance Score