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Ch 2: KPIs in Financial Management

About This Chapter

The lessons and quizzes in this corporate training chapter cover important key performance indicators in financial management. Have your company's supervisors complete this chapter to increase their financial management knowledge and strengthen their financial calculation skills.

KPIs in Financial Management - Chapter Summary

Help your organization's supervisors review financial management key performance indicators (KPIs) with this self-paced corporate training chapter. The chapter includes expertly taught lessons that show supervisors the basics of:

  • Net profit
  • Gross/net profit margins
  • Total revenue
  • Return on investment
  • The cash conversion cycle
  • Financial ratios

Supervisors can practice using the chapter's formulas by taking the included lessons quizzes and chapter exam. Our instructors are also available to answer any questions your supervisors may have about financial management KPIs.

How It Helps

  • Builds awareness: Supervisors will become more aware of metrics that are used to measure organizational finances.
  • Highlights important financial formulas: The chapter shows supervisors formulas for calculating metrics like net profit, gross profit, total revenue, return on investment and more.
  • Improves financial skills: Supervisors who study the chapter will improve their ability to make financial calculations and measure financial KPIs.

Skills Covered

By the end of the chapter, your company's supervisors should be able to:

  • Identify common financial metrics that are used in business
  • Make net profit calculations
  • Calculate gross and net profit margins
  • Define the concept of total revenue in economics
  • Use the formula for calculating a return on investment
  • Explain the cash conversion cycle
  • Analyze/use activity, profitability, liquidity and solvency ratios

12 Lessons in Chapter 2: KPIs in Financial Management
Test your knowledge with a 30-question chapter practice test
Common Financial Metrics Used in Organizations

1. Common Financial Metrics Used in Organizations

There are many financial metrics managers and investors can use to understand the financial health of an organization. In this lesson, we'll learn some of the most common metrics that most people in an organization can use and understand.

Net Profit: Definition & Calculation

2. Net Profit: Definition & Calculation

In this lesson, you will learn about net profit. You will learn the definition of net profit, how it is calculated, and see an example of how it relates to everyday life.

How to Calculate Net Profit Margin: Definition & Formula

3. How to Calculate Net Profit Margin: Definition & Formula

This lesson discusses the importance of the net profit margin. The formula is explained and an example is provided that walks through the steps of calculating net profit margin.

How to Calculate Gross Profit Margin: Definition & Formula

4. How to Calculate Gross Profit Margin: Definition & Formula

In this lesson, you'll learn the purpose of calculating gross profit margin and explore its components. You'll also learn how to analyze the results of the calculation.

Total Revenue in Economics: Definition & Formula

5. Total Revenue in Economics: Definition & Formula

Learn what total revenue is and why it is important to understand. Discover the formula to calculate total revenue and find out how you can maximize your total revenue in business.

Return on Investment: Definition, Formula & Example

6. Return on Investment: Definition, Formula & Example

Return on investment is a crucial analytical tool used by both businesses and investors. In this lesson, you'll learn the basic formula, discover a variant used for shareholders, and be provided examples.

The Cash Conversion Cycle: Definition, Formula & Example

7. The Cash Conversion Cycle: Definition, Formula & Example

This lesson will introduce you to the cash conversion cycle. it will be defined and a formula for its calculation is presented and explained. Finally a full illustration of the calculations is presented.

Activity Ratios: Definition, Formula & Analysis

8. Activity Ratios: Definition, Formula & Analysis

Businesses need to know how soon they can convert their assets into cash. They use activity ratios to figure it out. In this lesson, you'll learn the definition of activity ratio, as well as about some common types.

Profitability Ratio: Definition, Formula, Analysis & Example

9. Profitability Ratio: Definition, Formula, Analysis & Example

How do you know if a company is performing well? In this lesson, you'll learn about various profitability ratios, including what they mean, their formulas and examples illustrating them. A short quiz follows the lesson.

Liquidity Ratio: Definition, Calculation & Analysis

10. Liquidity Ratio: Definition, Calculation & Analysis

The financial stability of a company can be tested in many ways. One of the quickest ways to see just how well a company is performing is to use financial ratios. In this lesson, you will learn what liquidity ratios are, how to calculate them, and how to interpret them.

Using Liquidity Ratios & Formulas in Financial Analysis

11. Using Liquidity Ratios & Formulas in Financial Analysis

In this lesson, we'll define liquidity and discuss three financial ratios to determine a company's liquidity: current, quick and operating cash. You'll also learn how to calculate and analyze the ratios.

Analyzing Financial Statements using Solvency Ratios

12. Analyzing Financial Statements using Solvency Ratios

In this lesson, we'll define solvency and learn about three solvency ratios: debt, equity, and debt to equity.We'll also learn how to analyze each ratio and determine if a high or low ratio is positive or negative.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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