General Accounting KPI
The bookkeeping methods involved in making a financial record of business transactions and in the preparation of statements concerning the assets, liabilities, and operating results of a business.
1. Operating income: Operating Income equals Gross Profit minus SG&A Expenses. It is the income from current operations.
2. Gross profit: Gross Profit equals Revenue minus Cost of Goods Sold. It identifies the amount available to cover other operating expenses.
3. Gross profit margin: Gross Profit Margin equals Gross Profit divided by Revenue, expressed as a percentage.
4. Cost of goods sold (COGS): Cost of Goods Sold includes all expenses directly associated with the production of goods or services the company sells (such as material, labor, overhead, and depreciation). It does not include SG&A.
5. Operating margin: Operating Margin equals Operating Income divided by Revenue, expressed as a percentage.
6. Goodwill: Goodwill is an accounting term used to reflect the portion of the book value of a business entity not directly attributable to its assets and liabilities.
7. Total Assets: Total Assets are everything of value that is owned by a company.
8. Accounts Payable: Money owed (payable) to suppliers for goods or services purchased on credit that must be paid within a year.
9. Long-Term Debt: Long-Term Debt represents the amount of borrowings due more than one year from the date of the balance sheet.
10. Total Liabilities: Total liabilities represent the sum of all monetary obligations of a business and all claims creditors have on its assets.
11. Cumulative Annual Growth Rate (CAGR):
12. Cash Flow Return on Investments (CFROI): This is similar to ROI, but the only difference is CASH is used inplace of Profit.
13. SG&A expenses: Selling, General, and Administrative Expenses include all salaries, indirect production, marketing, and general corporate expenses.
14. Net profit margin: Net Profit Margin equals the Total Net Income divided by Revenue, expressed as a percentage.
15. Shares Outstanding: Shares Outstanding is the outstanding number of shares of the class of common stock that is most actively traded.
16. Total Equity: Total Equity equals Preferred Stock Equity + Common Stock Equity.
17. Total Current Assets: Total Current Assets equals Cash and Equivalents + Receivables + Inventories + Other Current Assets.
18. Other Current Assets: Other Current Assets includes prepayments, deferred charges, and amounts (other than trade accounts) due from parents and subsidiaries.
19. Inventories: Inventories is merchandise bought for resale or supplies and raw materials purchased for use in revenue producing operations.
20. Net Receivables: Net Receivables are amounts owed to the company, net of any provisions for bad debts.
21. Cash: Cash consists of cash and may include cash-like items such as short-term investments that can be quickly converted to cash.
22. Net Change in Cash: Net Change in Cash is the difference between the Cash and Cash Equivalents at the beginning of the reporting period minus the amount at the end of the reporting period.
23. Common Stock Equity: Common Stock Equity is the amount of shareholders’ equity attributable to common stock.
24. Preferred Stock Equity: Preferred Stock Equity is the amount of shareholders’ equity attributable to the preferred stock issued by the parent company.
25. Other Noncurrent Liabilities: The liabilities that are not assigned to Long-Term Debt or deferred Income Taxes.
26. Short-Term Debt: Short-Term Debt represents the amount of borrowings (principal and interest) that must be paid in the near future.
27. Other Noncurrent Assets: Assets that are not assigned to Net Fixed Assets or intangibles.
28. Total Current Liabilities: Total Current Liabilities equals Accounts Payable + Short-Term Debt + Other Current Liabilities.
29. Other Current Liabilities: Other Current Liabilities includes all other liabilities not assigned to Short-Term Debt or Accounts Payable.
30. Net Fixed Assets: Net Fixed Assets are the assets of a company that are of a relatively permanent nature and are not intended for resale, such as property, plants, and equipment.
Accounting KPI Contents