Key performance indicators (KPIs) can be defined as a set of quantifiable estimations used to measure an organization's overall long term performance.
KPIs explicitly help decide an organization's strategic, economic, and operational accomplishments, particularly contrasted with those of other organizations inside the same industry.
Also known as key success indicators (KSIs), key performance indicators vary between organizations and between sectors, contingent upon performance criteria.
For instance, a software organization striving to accomplish the fastest growth in its sector may think of year-over-year (YOY) revenue growth, as its key performance signal.
Oppositely, a retail chain may put more value on same store sales, as the best key performance indicator metric in which to measure its development.
KPIs bind to the financial elements ordinarily center around revenue and profit margins.
Net profit, probably the most tested and true of profit based estimations, shows the sum of revenue that stays, as benefits for a particular period of time, after balancing for all of the organization's expenses, taxes, and interest payments for that particular period of time.
Determined as a Rupee sum, net profit must be changed into a percentage of revenue called "net profit margin", to be utilized in relative analysis.
The gross profit margin, which estimates incomes after balancing for costs directly connected with the creation of products for selling, is another well known and used profit-based KPI.