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Finance Metrics
The most important Finance metrics and KPIs. Learn about what metrics and KPIs are best for you, vote, and contribute your own.
Profit per Employee
Profit per Employee is a measure of Net Income for the past twelve months (LTM) divided by the current number of Full-Time Equivalent employees. Because labour needs differ across sectors, this ratio is often used to compare companies within the same industry.
Propensity to Renew
Propensity to Renew is a measure of the likelihood a customer will renew their contract instead of terminating their engagement with a company, most often provided by the customer as part of a survey. It is an indicator of revenue risk and potential logo churn.
Purchases
Purchases is the total amount of money spent on making purchases from suppliers for the purpose of reselling for a profit.
Quick Ratio
The Quick Ratio measures the ability of your organization to meet any short-term financial obligations with assets that can be quickly converted into cash. It considers the ability for Current Assets, less inventory, to cover Current Liabilities.
R&D Productivity
R&D Productivity is a performance measure of how much new revenue is associated with dollars invested into R&D within a technology company.
Reactivation MRR
Reactivation MRR is the total amount of recurring revenue generated from reactivated customers who had previously cancelled services and have resumed a subscription within the current tracking period.
Refunded Charges
Refunded Charges measures the value of payments refunded to your customers.
Refunded Charges Count
Refunded Charges Count tracks the total number of payments refunded to your customers.
Research and Development to Revenue Ratio
The Research and Development to Revenue Ratio measures the percentage of total revenue that a company invests in innovation, product development, and technological advancement activities. This metric encompasses all costs associated with creating new products, enhancing existing offerings, conducting research initiatives, and maintaining technological competitive advantages. For finance leaders, this ratio represents a critical investment decision that balances current profitability with future growth potential, while for HR leaders, it reflects talent acquisition and retention strategies in technical disciplines that command premium compensation. The ratio serves as a strategic indicator of a company's commitment to innovation and long-term market viability. Unlike sales and marketing investments that typically generate near-term revenue returns, R&D investments often require longer payback periods but are essential for sustaining competitive differentiation and market position. For CTOs and VPs of Product/Engineering, this metric provides the financial framework within which they must deliver innovation outcomes, making it a crucial tool for resource allocation, team planning, and technology roadmap prioritisation.
Return On Marketing Investment
The Return On Marketing Investment (ROMI) metric measures how much revenue a marketing campaign is generating compared to the cost of running that campaign. Effective marketers are driven to connect their time, energy and advertising spend with results that contribute to company growth. This KPI answers the question, “are we recouping the time and money we spent developing and executing our marketing campaigns?”
Return on Ad Spend
Return on Ad Spend (ROAS) is a marketing metric that quantifies the total revenue generated for every dollar spent on advertising. In other words, ROAS measures the effectiveness of your advertising efforts by comparing total ad spend on campaigns to the revenue from those campaigns.
Return on Incremental Invested Capital
Return on Incremental Invested Capital is an efficiency metric used to measure the change in earnings as a percentage of incremental investments.