Example of Key Performance Indicator Analysis

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Let's take as an example the most popular indicator of the efficiency of the enterprise - profitability of sales. This is the ratio of profit from the sale of manufactured goods to the amount of revenue received. This indicator can be calculated as follows:

Return on Sales = (Sales Profit) / (Sales Revenue) * 100%

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By analyzing this parameter, we can understand what profit each ruble of sold goods will bring to the company. As a rule, the calculation is based on information from the organization's financial report. In this case, the formula for calculating profitability will look like this:

Return on sales = (line 2200 Form 2 (OFR)) / (line 2110 Form 2 (OFR)) * 100%

Example. Limited Liability cameroon email list Company "X", according to 2023 data, had a profit from the sale of manufactured products (line 2200 of the Financial Performance Report) of 345,010 thousand rubles, and revenue for the same reporting period was equal to 6,315,431 thousand rubles (line 2110 of the Report). The same data for another reporting period (2020) are:

sales revenue = 6,435,022 thousand rubles;

profit from sales = 477,834 thousand rubles;

Return on sales for 2023 was 345,010 / 6,315,431 x 100% = 5.46%;

Return on sales for 2020 = 477,834 / 6,435,022 x 100% = 7.42%.

Example of Key Performance Indicator Analysis

Source: freepik.com

Thus, we see that there is a negative trend - the profitability indicator is going down. This happens because the profit declines faster than the decrease in total revenue. The company's managers must conduct a timely analysis of product pricing, evaluate the marketing policy, and more strictly control the organization's expenses.