These financial KPIs fall under a variety of categories, including profitability, liquidity, solvency, efficiency, and valuation.īy understanding these metrics, you can be better positioned to know how the business is performing from a financial perspective. What Are Financial KPIs?įinancial KPIs (key performance indicators) are metrics organizations use to track, measure, and analyze the financial health of the company. To help you become more comfortable understanding and speaking about financial topics, here’s a list of the top financial metrics managers need to understand. With a better understanding of how your organization measures financial performance, you can take steps to provide additional value in your daily activities.įinance can be intimidating for the uninitiated. While you may not have a background in finance, a basic understanding of the key concepts of financial accounting can help you improve your decision-making process, as well as your chances for career success.

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