KPI
Glossary
40+ business metrics explained with context, formulas, and how each connects to the transformation framework. Not textbook definitions. Operator-grade explanations.
EBITDA
EBITDA measures a company's operating profitability before capital structure and...
Financial PerformanceEBITDA Margin
EBITDA margin expresses operating profitability as a percentage of total revenue...
Financial PerformanceGross Margin
Gross margin is the percentage of revenue remaining after subtracting the direct...
Financial PerformanceNet Profit Margin
Net profit margin shows the percentage of revenue that becomes actual profit aft...
Financial PerformanceStore Contribution Margin
Store contribution margin measures the profit each location generates after subt...
Financial PerformanceCash Conversion Cycle
The cash conversion cycle measures how long it takes to convert inventory invest...
Financial PerformanceOperating Cash Flow
Operating cash flow measures the cash generated by the company's core business o...
Financial PerformanceReturn on Invested Capital
ROIC measures how efficiently a company uses its invested capital to generate pr...
Financial PerformanceWorking Capital Ratio
The working capital ratio measures a company's ability to pay its short-term obl...
Financial PerformanceFree Cash Flow
Free cash flow is the cash remaining after a company pays for operations and cap...
Same-Store Sales Growth
Same-store sales growth measures revenue change at locations open for at least o...
Revenue & GrowthRevenue per Store
Average sales generated by each physical location. It reveals whether expansion ...
Revenue & GrowthAverage Transaction Value
ATV measures the average dollar amount customers spend per transaction. It refle...
Revenue & GrowthRevenue per Square Foot
Revenue per square foot measures how productively a retailer uses its physical s...
Revenue & GrowthUnits per Transaction
Units per transaction measures the average number of items in each purchase. It ...
Revenue & GrowthRevenue Growth Rate
Revenue growth rate measures the percentage increase in total revenue from one p...
Revenue & GrowthMarket Share
Market share measures your company's revenue as a percentage of the total market...
Customer Acquisition Cost
CAC measures the total cost of sales and marketing efforts required to acquire o...
Marketing & SalesCustomer Lifetime Value
CLV estimates the total revenue a business can expect from a single customer ove...
Marketing & SalesLTV:CAC Ratio
The LTV:CAC ratio compares how much a customer is worth over their lifetime to h...
Marketing & SalesCustomer Retention Rate
Customer retention rate measures the percentage of customers who continue to buy...
Marketing & SalesChurn Rate
Churn rate measures the percentage of customers who stop doing business with you...
Marketing & SalesConversion Rate
Conversion rate measures the percentage of visitors (foot traffic or website vis...
Marketing & SalesBrand Awareness
Brand awareness measures how recognizable your brand is within your target marke...
Marketing & SalesBounce Rate
Bounce rate measures the percentage of visitors who leave your website after vie...
Inventory Turnover
Inventory turnover measures how many times a company sells and replaces its inve...
OperationsDays Sales of Inventory
DSI calculates the average number of days it takes to sell the entire inventory....
OperationsStockout Rate
Stockout rate measures the percentage of SKUs or products that are unavailable w...
OperationsOrder Fill Rate
Fill rate measures the percentage of customer orders that are shipped complete o...
OperationsOn-Time Delivery Rate
On-time delivery rate measures the percentage of orders delivered to customers b...
OperationsOrder Accuracy Rate
Order accuracy measures the percentage of orders delivered without errors (wrong...
OperationsShrinkage Rate
Shrinkage measures inventory loss from theft, damage, administrative errors, and...
OperationsSupplier Lead Time
Supplier lead time measures the average number of days between placing a purchas...
OperationsCapacity Utilization
Capacity utilization measures what percentage of total production capacity is cu...
Net Promoter Score
NPS measures customer loyalty by asking one question: How likely are you to reco...
Customer ExperienceCustomer Satisfaction Score
CSAT measures how satisfied customers are with a specific interaction, product, ...
Customer ExperienceCustomer Effort Score
CES measures how much effort a customer has to exert to resolve an issue, make a...
Revenue per Employee
Revenue per employee divides total revenue by headcount. It measures how product...
People & ProductivityEmployee Turnover Rate
Employee turnover rate measures the percentage of employees who leave the compan...
People & ProductivityLabor Cost Ratio
Labor cost ratio expresses total people costs (wages, benefits, training, overti...
People & ProductivityEmployee Engagement Score
Employee engagement score measures how connected, motivated, and committed emplo...