Recent Articles

Category: Product

How does Profit support change in OKRs during the quarter?

OKRs change during the quarter, our OKR Software is equip to help you manage this. When we set OKRs, we focus on the things that...

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Category: Product

Profit.co Enterprise Support Process

Case Flow When using our OKR tracking software cases originate from our 3 support channels (Chat, Email, Phone/Zoom Call) Case type is based on below...

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Category: OKR University

PEEL approach to OKRs

The OKR approach is not a magic wand that shifts any business onto a new paradigm that produces consistently good results. OKRs are a way...

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Category: Product

How does Profit enable OKR visibility across departments or business segments?

While OKRs promote transparency, there are situations where you want OKRs to be restricted. For example, you may have a secret initiative that needs to...

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Category: Product

How does Profit enable OKR visibility across teams?

While OKRs promote transparency, there are situations where you want OKRs to be restricted. For example, you may have a secret initiative that needs to...

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Category: Product

How does Profit enable OKR visibility at an overall Organization level?

The organization’s commitment to OKRs should be public and visible. As John Doerr said, “Transparency seeds collaboration”, OKRs within an organization must be accessible to...

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Category: Product

How does Profit support continuous learning on the OKR performance during the period?

Profit.co’s OKR philosophy is summarized by the PEEL approach. The “L” in our "PEEL" approach, refers to Learning and is key and an extremely important...

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Category: Product

How do I check-in and track my Key Result progress?

Key result progress is displayed in a cool slider bar with an easy drag option to change progress. The current value is shown with a...

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Category: Product

What are the data visualizations provided in Profit to display and support key result achievement?

Visualizing your progress towards your key results and set objectives helps you track the performance of organization/department/team/individual OKRs. Profit provides multiple visualizations and reports for...

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Category: Product

What are the reports provided in Profit to display and support key result achievement?

Reports help you stay on top of your OKR process and steer your OKR program to success. Profit provides multiple visualizations and reports for the...

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Category: Product

How does Profit enable users to clearly define their OKRs?

Most of the businesses that want to use OKRs struggle to get started with writing good OKRs. There are a lot of written materials available...

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Category: OKR University

How can businesses adopt OKRs successfully?

Many experts say that software contributes to roughly 20-25% of the overall OKR program's success. There are many other factors that determine the successful rollout...

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Right Key result?

Category: OKR University

How do you ensure that your key results are the right ones?

Let's take an example and try to understand if the key results you’ve come up with are really the right ones. In this example, we...

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TAM calculation approach banner image

Category: Strategy OKRs

OKRs to establish the total addressable market

Market research is fundamental to a good pitch or strategic plan, but the effectiveness of your research depends on how you conduct it. While knowing...

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OKRs for creating Target B2C Personas

Category: Marketing OKRs, OKR Examples

OKRs for creating Target B2C Personas

Personalization is a critical component of sales in modern commerce. Customers want a product and experience tailored to meet their specific needs. If your brand...

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Move from percentage tracked to KPI based key results

Category: OKR University

Move from percentage tracked to KPI based key results

When getting started with OKRs, the biggest challenge you face is how to define a good OKR. Defining an Objective, the “what do you want...

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Category: OKR University

What are the approaches to grading OKRs in Profit.co?

Why grade OKRs? OKR grading is actually a step or a precursor towards your end of quarter reflection, which is a major exercise as part...

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Choose right OKR level

Category: OKR University

Approaches to choosing the appropriate OKR levels

OKR Rollout Options One of the most important decisions to make while launching your OKR program is to decide specifically at what level you choose...

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Category: OKR University

Simple approaches to top-down alignment

Aligning your OKRs is an important component to achieve an effective OKR, and Profit.co makes this process as seamless as it can be. Profit.co allows...

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Why OKRs

Category: OKR University

Why OKRs?

Why do you need OKRs? On many occasions, this is the number one question we face from a prospect who has no background information about...

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Using OKRs to Launch your Business on Twitter

Category: Marketing OKRs

Using OKRs to Launch your Business on Twitter

Twitter is unique. Though they only have 330 million monthly active users, much smaller than other platforms, these users are engaged and searching for information,...

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Category: OKR University

Key Result Weights

Why weighted key results? Typically, 3-5 key results are defined to measure the achievement of the objective. These key results’ progress influence objective attainment. However,...

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OKRs for Jira : Installation and configuration

Category: Integrations

OKRs for Jira : Installation and configuration

Jira is a tool used to track issue and bugs related to your software. It is also used for project management. You can integrate Profit...

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OKRs for Jira : Modelling epic story points as a key result

Category: Integrations

OKRs for Jira : Modelling epic story points as a key result

How do I create a key result in Profit to track epic progress based on the story points from Jira epics? Create a Jira Epic...

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OKRs for Jira : Modelling epic story points % as a key result.

Category: Integrations

OKRs for Jira : Modelling epic story points % as a key result.

How do I create a key result in Profit to track epic progress based on the percentage of story points from Jira epics? Create a...

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OKRs for Jira : Modelling epic progress based on the issues as a key result.

Category: Integrations

OKRs for Jira : Modelling epic progress based on the issues as a key result.

How do I create a key result in Profit to track epic progress based on the number of issues(task, bug, story) from Jira epics? Create...

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OKRs for Jira : Modelling epic progress based on the issues % as a key result.

Category: Integrations

OKRs for Jira : Modelling epic progress based on the issues % as a key result.

How do I create a key result in Profit to track epic progress based on the % of issues(task, bug, story) from Jira epics? Create...

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OKRs for Jira : Modelling task hours as a key result.

Category: Integrations

OKRs for Jira : Modelling task hours as a key result.

How do I create a key result in Profit to track epic progress based on the number of task hours from Jira epics? Create a...

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OKRs for Jira : Modelling task hours % as a key result.

Category: Integrations

OKRs for Jira : Modelling task hours % as a key result.

How do I create a key result in Profit to track epic progress based on the percentage of task hours from Jira epics? Create a...

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OKRs for Jira : Modelling task as a key result.

Category: Integrations

OKRs for Jira : Modelling task as a key result.

How do I create a key result in Profit to track the progress of a task in Jira? Create a Jira Task as a Key...

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Deliberate ignorance Banner image

Category: Behavioral Economics

Deliberate ignorance in the Business Setting

The first line of Aristotle's Metaphysics starts with a seemingly obvious truth "All men by nature want to know". According to Aristotle, our desire for...

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Percent KPI

Category: OKR University

Percent KPI

Question: How do I create a % KPI that I can set the start and end values for? Currently, it only operates as 0 to...

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Product positioning OKR

Category: Marketing OKRs

An OKR to get your product positioning done

Positioning is the art of making your product stand out in the mind of your target buyer. According to Kotler, “the act of designing the...

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Be on the Right

Category: OKR University

Be on the Right

Objectives and Key Results Software (OKR), when correctly deployed, is an immensely powerful tool for guiding an organization towards its critical successes. However, the way...

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Are OKRs replacing KPIs

Category: OKR University

Are OKRs replacing KPIs?

No, OKRs do not replace KPIs. Simply put, they serve different purposes and cannot replace each other. We’ve already documented the difference between OKRs and...

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Startups embrace OKRs

Category: OKR University

Why should startups embrace OKRs?

Entrepreneurs set audacious goals to change the world. They have crazy ideas, throw their money, time, and their life behind those crazy ideas. With their...

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OKRs Vs. Lean Startup Methodology

Category: OKR University

OKRs Vs. Lean Startup Methodology

OKRs are an amazing way to manage startups. How so? Well, let’s actually take OKRs and compare with the lean startup movement, to see how...

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The Importance Of Planning

Category: Plan

The Importance Of Planning

We’ve heard these phrases many times — think before you act, look before you leap, and so on. The key theme behind these phrases is...

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difference between OKRs and Performance Management

Category: OKR University

What is the difference between OKRs and Performance Management?

Looking at the wide use OKRs enjoy in business today, it becomes obvious that this goal management tool is as relevant today as it was...

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Decision Fatigue

Category: Behavioral Economics

Decision Fatigue

Decision Fatigue refers to the mental exhaustion that is caused after rigorous decision-making sessions. It addresses how the quality of decisions deteriorates after an individual...

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The IKEA Effect and OKR: Boosting Employee Engagement

Category: Behavioral Economics

The IKEA Effect and OKR: Boosting Employee Engagement

Engage \ in-ˈgāj: to occupy, attract, or involve someone’s interest or attention. Employee engagement is now at the forefront of successful corporate strategy. According to...

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Deliver Amazing Customer Support

Category: Customer Support OKRs

Deliver Amazing Customer Support

A Customer support team wants to deliver amazing support to its customers. How can they measure if they are delivering amazing support to their customers?...

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Behavioral Economics and Employee Engagement

Category: Behavioral Economics

Behavioral Economics and Employee Engagement

How many of us have landed our ideal dream job? According to the Gallup reports, only 33% of the U.S. labor force and 15% of...

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Provide Excellent Implementation Experience

Category: Onboarding OKRs

Provide Excellent Implementation Experience

A Product implementation team wants to provide an excellent implementation experience for customers.How can they measure if they are delivering excellent implementation experience? These are...

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The Role Loss Aversion Plays in the Goal Setting Process

Category: Behavioral Economics

The Role Loss Aversion Plays in the Goal Setting Process

Loss aversion as its name implies occurs when the psychological impact of losing something outweighs the pleasure of gaining. The economists have identified loss aversion...

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The Alphabet P

Category: The Alphabet P

The Alphabet P

The alphabet P is a pretty powerful alphabet among the English alphabets. According to the post “which English letter is the starting letter for the...

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Never underestimate the spirit of a true entrepreneur

Category: Persistence

Never underestimate the spirit of a true entrepreneur

If you have been paying attention to the many inspiring stories of today’s renowned entrepreneurs, you will notice that they did not become successful overnight....

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The importance of Partnership in business

Category: Partnership

The importance of Partnership in business

The partnership is crucial to the growth of any business venture. Merchants and traders from time immemorial have made use of the principle of a...

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Category: UX OKRs

Improve User Experience

A UX team wants to improve the User experience of their product. How can they measure if they are delivering amazing user experience? (more…)

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Category: Supply Chain OKRs

Automate Order Management

A supply chain manager wants to automate the order process. He can measure the progress towards his objective using the following potential indicators: (more…)

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Category: SEO OKRs

Increase Website Engagement

SEO team wants to increase engagement with website visitors. They can measure the progress towards their objective using the following potential indicators: (more…)

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Category: Sales OKRs

Penetrate European Market

A Sales manager wants to penetrate European market. She can measure the progress towards her objective by completing the following potential indicators: (more…)

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Improve online lead generation

Category: Marketing OKRs

Improve Online Lead Generation

Marketing Manager wants to improve leads generated online. He can measure the progress towards his objective by completing the following potential indicators: (more…)

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Category: Human Resource OKRs

Improve Human Capital ROI

HR team wants to improve human capital ROI. How can they measure if they are progressing towards their objective? (more…)

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Category: Finance OKRs

Improve Debt Status on Balance Sheet

Finance Manager’s objective is “ Improve debt status on balance sheet”. How can he measure the fulfillment of his objective? (more…)

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Improve Quality/Stability

Category: Engineering OKRs

Improve Quality/Stability

An Engineering team wants to improve the quality of their product. How can they measure if they are delivering a better quality product? (more…)

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Delight Customers

Category: Customer Success OKRs

Delight Customers

A Customer Support manager’s objective is to “Delight customers'' How can he measure if customers are getting maximum product value? (more…)

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The Power of Perspective

Category: Perspective

The Power of Perspective

As iron sharpens iron, so one person can sharpen the skills of another. It’s natural for humans to look at a problem from only one...

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Pivots

Category: Pivot

Pivots: Why & When?

Most startups go through a “pivot” stage to find the right target customer, market position, and value proposition for their business. This article describes how...

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Sharpe Ratio

Category: Financial

Sharpe Ratio

This is an investment measurement and is used to calculate an investment’s average return beyond the risk-free rate of volatility per unit. Basically, the Sharpe...

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Asset Coverage Ratio

Category: Financial

Asset Coverage Ratio

This article covers the far-reaching topic of the asset coverage ratio. We’re talking about a risk measurement whose aim is to calculate a company’s capability...

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Category: Engineering

Build Time

When you work in a company, handling the processes your team is involved in can be a real struggle – especially when it comes to...

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Average replies per ticket.

Category: Customer Support

Average replies per ticket

Working in customer support is tough. You get to deal with a lot of clients, and sometimes the target of their frustrations is you. Sometimes,...

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Account Summary

Category: Customer Support

Account Summary

Moving on, when it comes to account summary, this usually refers to the way in which a customer service agent deals with a customer. Evidently,...

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Average Customer Satisfaction Score (Average CSAT Score)

Category: Customer Support

Average Customer Satisfaction Score (Average CSAT Score)

It’s no surprise that the customer’s happiness and satisfaction should be a company’s main concern. The customer is the one helping it grow, thus making...

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Operations OKRs

Category: OKR University

Operations OKRs

Let’s examine a few examples of how operations departments can utilize OKR from the top down. Example 1: Work Environment Objective: Improve the office’s workspace...

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Finance OKR Examples

Category: OKR University

Finance OKR Examples

The OKR method has been proving a highly effective way to structure and achieve objectives since the 70s — and its methodology is particularly useful...

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Marketing OKRs

Category: OKR University

Marketing OKRs

The nature of marketing work necessarily entails a much broader and less defined industry standard for establishing and maintaining KPIs. Due to its highly subjective...

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Engineering OKRs

Category: OKR University

Engineering OKRs

Your engineering team faces a set of challenges unique to its field. The OKR method can be a powerful and effective tool to align your...

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Sales OKRs

Category: OKR University

Sales OKRs

OKR can be a powerful tool for sales teams to achieve better turnout and higher productivity than you thought possible. It serves as a convenient...

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Implementing Your OKR

Category: OKR University

Implementing Your OKR

Step 1: Familiarize yourself with OKR Defining an OKR is easy, Objectives and Key Results, or OKRs in short, is a rigorous goal setting and...

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Category: OKR University

Preparing for OKR

In the right hands, OKR’s can be the most effective goal management measure to reach your company’s objectives and reach new levels in your industry....

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Category: OKR University

OKRs vs KPIs

In our discussions with many OKR enthusiasts and prospects, this is one of the most frequently asked questions. Typical follow up questions are: How are...

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What exactly is an OKR?

Category: OKR University

What exactly is an OKR?

So, what is an OKR? In simple terms the abbreviation stands for "Objectives and Key Results". In more detail an OKR can be defined as...

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Average time to find a hire

Category: Financial

Average Time To Find a Hire

In today’s post, we will focus our attention on one of the most important and relevant recruiting metrics – namely the average time to find...

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Average Time to Fill a Job Vacancy

Category: HR

Average Time to Fill a Job Vacancy

When your company is left with an open position it is basically understaffed – this also means that your company probably has some of its...

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Average Tenure

Category: HR

Average Tenure

When an employee is satisfied with a company, they will remain with it until the end – or at least, until they find a better...

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Benefits Satisfaction

Category: HR

Benefits Satisfaction

The benefits – the very first thing a potential employee asks about. Now, of course, any employee can grow to be dissatisfied with his benefits,...

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Candidates Interviewed per Hire

Category: HR

Candidates Interviewed per Hire

The discussion regarding the most important metrics in human resources is open to debate. However, most people agree on the fact that the candidates interviewed...

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Cost per Hire

Category: Financial

Cost per Hire

Judging by the name of this metric, Cost per Hire refers to the amount of money your company spends in order to hire a person....

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Cycle Time to Process Payroll

Category: HR

Cycle Time to Process Payroll

While most organizations tend to overlook and underrate HR metrics, their efficiency in assessing the policies, employees and other important aspects is undeniable. Assessment and...

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Category: HR

Cycle time to resolve payroll errors

HR metrics are generally overlooked by most organizations but underrating them might not be the best idea – particularly if you’re an entrepreneur who desires...

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Diversity numbers/Nationalities in the work force

Category: HR

Diversity numbers/Nationalities in the work force

When you own a company, you know that the employees are going to be different from each other. They are not only of different genders,...

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Diversity Rate

Category: HR

Diversity Rate

The Diversity Rate metric is important for a company because of several reasons. Probably the most important one is the fact that the said company’s...

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Effectiveness of training

Category: HR

Effectiveness of training

Many times, we’ve seen companies that don’t cover all the things their new employees should know in their training sessions/ periods. Such a thing will...

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Category: HR

Employee Productivity Rate

There’s a rule of thumb that applies to all companies in the world: the employees are divided into productive and procrastinators. When those procrastinators do...

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Category: HR

Employee Satisfaction Index

It should come as no surprise that if they are unhappy, employees will leave the company that they work for. A couple of years ago,...

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Category: HR

First Year Voluntary Termination Rate

The First Year Voluntary Termination Rate is yet another Human Resources metric – of course, it’s also one that’s very important to a company, as...

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Category: HR

Health Care Expense per Current Employee

It goes without saying that most employers try to offer their employees the best healthcare plans. However, health care plans are becoming more and more...

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Category: HR

Hiring Process Satisfaction Rate

As CEO or part of the management’s team of a certain company, you will rarely look into how the hiring process is being done –...

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Category: HR

Involuntary Termination Rate

The termination rate of a company is the percentage of people that decide (or are forced) to leave the company for various reasons. The voluntary...

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Knowledge achieved With Training

Category: Financial

Knowledge achieved With Training

Each entrepreneur is concerned about the prosperity of the business. And a business’ prosperity is naturally linked with the productivity and preparation level of its...

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Category: HR

Net Promotor Score

You’ve probably heard a lot of people complain about their workplace. They talk about how bad it is, and how they will never recommend anyone...

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Category: HR

New hire 90-Day Failure Rate

The New Hire 90-Day Failure Rate is a Human Resources metric that’s used by businesses and companies in order to determine the percentage of new...

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Category: HR

Number of Contractors

As a company, you probably have your own employees that you can rely on a daily basis. They are your pillars that will help your...

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Category: HR

Number of D&I initiatives implemented

Diversity and inclusion in the workspace represent a sensitive topic that every employer must know of and apply. And not only must the employer apply...

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Category: HR

Number of Employee Satisfaction Surveys

By now you should already be familiar with the Employee Satisfaction Survey, which should be taken once every 6 months. However, it can so happen...

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Category: HR

Number of Full-Time Employees

As the owner of a company, you probably have two types of employees: full-time and part-time. However, since part-time employees are only contributing a small...

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Asset Turnover Ratio

Category: HR

Percentage of Cost of Workforce

When it comes to HR metrics, the cost of workforce is the elephant and the room and the reason for that is quite transparent: in...

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Total Visits

Category: Financial

Percentage of Employees Trained in Company Culture

A company needs to perform well, and if you’re an owner, you know a lot about that. Not only you need to generate sales and...

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Web Traffic Concentration

Category: HR

Percentage of Employees Trained

There are several situations in which your new employees could require training. For example, after a month of them being on the job, your company...

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Total Visits

Category: HR

Percentage of Job Candidates Who Meet Job Criteria

When candidates apply for a job, they don’t always know everything it includes. Some of them meet the job criteria, while others don’t, and you...

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Cycle Time to Process Payroll

Category: HR

Percentage of Vacation Days Used

In order to maintain a healthy life and work properly too, employees need vacations. In order to make that possible, they need to have a...

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Successful to unsuccessful tenders

Category: HR

Percentage of Workforce below Performance Standards

As an entrepreneur of a successful company, you want your employees to perform well. Sometimes, the term well is difficult to put in words, and...

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Category: HR

Performance of New Hires

Employees, regardless of how long they’ve been employed at your company for, need to have a good performance. It is the only way your company...

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Category: HR

Rate of Internal Job Hires

There are so many metrics that it’s hard to keep track of each and every one of them. One of the metrics that is often...

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Category: HR

Rate of Internal Referral Hires

Employees need to have a certain set of skills, as well as a lot of knowledge in the domain. When hiring new people, you want...

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Category: HR

Retirement Rate

Those who start up their new business do so with a plan: to be successful in their business in the long run. And for you...

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Asset Turnover Ratio

Category: HR

Return On Investment (ROI)

If anyone is getting into business without having no clue what the ROI is, they are in some serious trouble. When one owns a company,...

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Web Traffic Concentration

Category: HR

Salary Competitiveness Ratio (SCR)

If you’ve worked in a company for years on end, you probably realized that people want better salaries not on account of them being materialistic,...

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Total Visits

Category: HR

Training Cost per Employee

As you probably already know, simply hiring someone may not be enough to boost the performance of a certain department of your company. In this...

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Cycle Time to Process Payroll

Category: HR

Turnover Rate for Highest Performers

Companies hate it when their people leave – but they hate it even more when a valuable person with vast experience leaves. According to some...

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Successful to unsuccessful tenders

Category: HR

Voluntary Termination Rate

It’s very rare that an employment at a certain company lasts for a lifetime – mainly because the average person works for about five years...

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Category: HR

Yield Percentage

How can a company assess that its recruiting process is efficient or not? One of the ways in which you can do that is by...

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Return on Assets

Category: Financial

Return on Assets

The return on total assets can show if the managing team is effective at earning money from the company’s assets in a certain amount of...

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Retention Ratio

Category: Financial

Retention Ratio

The retention ratio or plow back ratio is the calculation that shows you exactly what percentage of your net income is retained for the business...

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Residual Income

Category: Financial

Residual Income

Residual income refers to the amount of money that is left after all the expenses have been paid for a period. The residual income can...

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Receivables Turnover Ratio

Category: Financial

Receivables Turnover Ratio

To start with, the accounts receivable turnover represents an efficiency ratio. Thus, its main purpose is to assess the number of times a firm can...

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R-Squared (R2)

Category: Financial

R-Squared (R2)

Also known as the coefficient of determination, r-squared is the statistical measurement that comes from the correlation made between the performance of a certain investment...

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Quick Ratio – Acid Test

Category: Financial

Quick Ratio – Acid Test

The quick ratio, also known as acid test ratio, is used to measure a company’s ability to pay off its current liabilities when these come...

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Category: Financial

Profit Margin Ratio

In order to measure the amount of net income earned by a company with each dollar sales that are generated we use the profit margin...

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Price to Sales

Category: Financial

Price to Sales

Also a financial metric, the price to sales ratio is used to measure the value that the investors put on a certain company for each...

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Price to Earnings P/E Ratio

Category: Financial

Price to Earnings P/E Ratio

In today’s post, we’d like to focus our attention on the price to earnings ratio. This is a prospect ratio that calculates a stock’s market...

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Total Visits

Category: Financial

Price to Cash Flow

The price of a company is compared to the underlying cash flow by using the Price to Cash Flow profitability ratio, also abbreviated as P/CF....

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Price to Book Ratio

Category: Financial

Price to Book Ratio

The price to book ratio is renowned as an important financial valuation tool. Essentially, it is utilized in an attempt to appraise if a stock...

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Present Value (PV)

Category: Financial

Present Value (PV)

The present value is, many times, referred to as the discounted value – and it a widely used financial formula. So, what it is used...

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Preferred Dividend Coverage Ratio

Category: Financial

Preferred Dividend Coverage Ratio

This article will focus on presenting the specifications of the preferred dividend coverage ratio. This ratio assesses a corporation’s financial capability of paying the dividends...

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PEG Ratio

Category: Financial

PEG Ratio

What does the PEG ratio stand for? Why is it used and how could we define it? This article focuses on answering these specific questions....

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Payback Period

Category: Financial

Payback Period

If you wish to find out what payback period is, you’ve come to the right place. It’s basically a financial capital budgeting method that estimates...

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Accounts Payable Turnover Ratio

Category: Financial

Accounts Payable Turnover Ratio

If you accessed this article, it means that you are probably looking for information about accounts payable turnover ratio. Here is the information that you’re...

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Category: Financial

Operating Leverage

If you’ve accessed this page, you are probably eager to find out more about operating leverage. Well, operating leverage is a financial efficiency ratio that...

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Asset Turnover Ratio

Category: Financial

Operating Income

If you clicked on this article, you’re probably interested in operating income and what it means. Well, it will tell you what you need to...

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Web Traffic Concentration

Category: Financial

Operating Cash Flow

If you’re a beginner when it comes to finances, you would probably want to know what the operating cash flow means. Basically, it’s an efficiency...

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Cycle Time to Process Payroll

Category: Financial

Net Operating Profit After Tax

If you wanted to know what the Net Operating Profit after Tax is and how it works, you came to the right place. Net Operating...

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Successful to unsuccessful tenders

Category: Financial

Net Working Capital

Ever heard the term “networking capital”, but you didn’t know what it means? If that’s the case, this article comes to your aid. The net...

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Net Profit Margin

Category: Financial

Net Profit Margin

The net profit margin is used to find out whether a business is poorly managed and to see future profitability. By comparing the total sales...

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Net Present Value (NPV)

Category: Financial

Net Present Value (NPV)

The net present value is used to calculate the difference between the cash inflows and outflows of a potential investment or project. To make it...

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Net Operating Income

Category: Financial

Net Operating Income

If you work for a real estate agency, you may have heard about the net operating income. Basically, this is a profitability formula used to...

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Net Interest Margin

Category: Financial

Net Interest Margin

How well you administer your money is mainly up to you. However, the net interest margin ratio is a term that shows you how well...

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Category: Financial

Net Income

Net income, bottom line or net profit, call it whatever you want, is the amount of money that remains after you pay all the debt...

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Net Fixed Assets

Category: Financial

Net Fixed Assets

Ever wondered how much 100 gums cost 20 years ago compared to today? Such calculations are simple, but for a company that could lose everything,...

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Return on Capital Employed

Category: Financial

Return on Capital Employed

To better understand what the return on capital employed means, first we need to understand what the capital employed is. By employing capital, you will...

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Total Visits

Category: Financial

Long Term Debt to Assets

When it comes to being in debt, no one likes that, especially companies, where “profit” is the most used word. They may put you in...

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Net Debt

Category: Financial

Net Debt

Everybody must know and check their financial situation on a regular basis. Some people check their wallets or credit cards daily. But when you rule...

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Marginal Revenue

Category: Financial

Marginal Revenue

This is a term used in microeconomics, and it’s quite a well-known formula. However, in order to get a better understanding of what marginal revenue...

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Margin of Safety

Category: Financial

Margin of Safety

Everybody needs to break even, so this ratio will give you the insight of what goes too much or too little. In other words, the...

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Loan to Value

Category: Financial

Loan to Value

Abbreviated as LTV, the loan to value ratio is a risk assessment measurement. It is used to calculate the amount that has been loaned as...

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Internal Rate of Return

Category: Financial

Internal Rate of Return

The internal rate of return, also abbreviated as IRR, is used to identify which future projects or capital investments will have an acceptable return –...

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Interest Coverage Ratio

Category: Financial

Interest Coverage Ratio

The financial ratio known as interest coverage ratio determines whether a company is able to make interest payments on its debt or not and that...

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Category: Financial

Gross vs. Net

Gross and net usually refer to income and it is also something that seems quite difficult to understand for some people. For example, you might...

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Gross Profit

Category: Financial

Gross Profit

The profitability ratio called gross profit (also known as gross profit margin) is used to calculate the percentage of sales that are exceeding the costs...

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Gross Margin Ratio

Category: Sales

Gross Margin Ratio

Also a profitability ratio, the gross margin ratio compares a business’ gross margin to its net sales, measuring if a company sells its merchandise or...

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Goodwill to Assets

Category: Financial

Goodwill to Assets

The financial measurement called goodwill to assets is used to compare the intangible assets of a company – like a customer list, brand name, and...

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Total Visits

Category: Financial

Free Cash Flow

Usually abbreviated as FCF, the Free Cash Flow is an efficiency as well as a liquidity ratio. It calculates how much money a company is...

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Fixed Charge Coverage Ratio

Category: Financial

Fixed Charge Coverage Ratio

Whether a company is able to pay off its fixed charges or expenses with its own income or not – before income taxes and interests...

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Fixed Asset Turnover Ratio

Category: Financial

Fixed Asset Turnover Ratio

If you’re wondering what this ratio is, you’re just about to find out. It’s an efficiency ratio that measures a firm’s return on their investment...

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Return on Equity

Category: Financial

Return on Equity

Before we engage in explaining the formula, you need to know what the difference between a shareholder and a stakeholder is. A shareholder holds a...

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Expense Ratio

Category: Financial

Expense Ratio

Have you heard the term “expense ratio”, but it confused you? In that case, you’ve come to the right place, because you’re going to find...

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Return On Invested Capital

Category: Financial

Return On Invested Capital

When you are the accountant of a business, there are certain things that you may want to keep in mind – and this is calculating...

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Equity Ratio

Category: Financial

Equity Ratio

An equity ratio calculates the number of assets financed by owners’ investments. Basically, it does so by comparing the total equity in the company to...

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Category: Financial

Return on Investment

As an investor, you will want to know that the company you are placing your bets on will bring a high return. Regardless of you...

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Return On Net Assets

Category: Financial

Return On Net Assets

RONA - It may sound like some fancy name for a fancy person, but it’s actually the name of a finance formula – albeit one...

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Equity Multiplier

Category: Financial

Equity Multiplier

You may be wondering what equity multiplier means. Well, it’s a leverage ratio that basically measures the part of the company’s assets financed by equity....

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Total Visits

Category: Financial

Return On Operating Assets

A company needs a fair number of operating assets in order to continue functioning. This is practically what keeps the company going. The return on...

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Return On Retained Earnings

Category: Financial

Return On Retained Earnings

The amount of money you allocate for the growth of the company tells a lot about the growth potential of a company, as well as...

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Return on Sales

Category: Financial

Return on Sales

This financial ratio is used to show how efficient a company is at using its revenue in order to generate profits. Also called the operating...

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Category: Financial

Rule of 72

If you want to see for how long you have to invest your money in order to double it, with a given interest rate, then...

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Sales to Admin Expenses

Category: Financial

Sales to Admin Expenses

This efficiency ratio is used to measure if a company is efficient at managing its non-operating expenses in order to generate sales during the normal...

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Enterprise Value explained

Category: Financial

Enterprise Value explained

The enterprise value (EV) is a direct representative of the economic value of a company – in other words, how much money someone would have...

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The basics of EBITDA

Category: Financial

The basics of EBITDA

When you want to understand how a certain company thrives in a particular industry, you need to have certain formulas in mind. An acronym for...

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Category: Financial

Sortino Ratio

The Sortino ratio is an alternative to the Sharpe ratio, as it isolates the effects volatility has on investments. This ratio is used to determine...

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EBITA and how It works

Category: Financial

EBITA and how It works

EBITA, short for Earnings before Interest Taxes and Amortization, is a formula that calculates the operational profitability of a company by including the costs of...

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Times interest Earned Ratio

Category: Financial

Times interest Earned Ratio

Also called the interest coverage ration sometimes, the times interest earned ratio is a coverage ratio. It can calculate the proportionate amount of earnings that...

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Total Visits

Category: Financial

Understanding EBIT

Shortened from Earnings before Interest and Taxes, and also referred to as the operating income, is an equation that measures the operating profits of a...

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Treynor Ratio

Category: Financial

Treynor Ratio

Also known as the reward to volatility ratio sometimes, the Treynor ratio is basically a risk assessment formula. It can estimate the volatility in the...

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DuPont Analysis – The Basics

Category: Financial

DuPont Analysis – The Basics

While the name may sound very fancy, this is actually a crucial method to understand the finance point of a company. Also referred to as...

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Dividend Yield

Category: Financial

Dividend Yield

Every fundamental analysis tool works differently for every investor – so in order to understand the stocks, you need to know how to calculate them...

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WACC

Category: Financial

WACC

Were you looking for information about the Weighted Average Cost of Capital? In that case, you’re just in the perfect place! WACC is a financial...

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Dividend Payout Ratio

Category: Financial

Dividend Payout Ratio

The DPR (Dividend Payout Ratio) is the dividend amount that has been given to shareholders as payment – and which is in direct relation with...

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Working Capital Ratio

Category: Financial

Working Capital Ratio

If you’re here, it’s because you are most likely curious about what the working capital ratio is and how it works. Also called the current...

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Category: Financial

Z-Score

Wondering what a Z-Score is? Well, it’s basically an estimation of the number of standard deviations a point is away from the mean of its...

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Defensive Interval Ratio (DIR)

Category: Financial

Defensive Interval Ratio (DIR)

The defensive interval ratio is considered to be one of the most valuable liquidity ratios. Expressly, it focuses on calculating how many days it takes...

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What Is the Debt to Income Ratio?

Category: Financial

What Is the Debt to Income Ratio?

The debt to income ratio is considered to be a valuable number – some people even say that it is as important as one’s credit...

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Total Visits

Category: Financial

The Debt to equity ratio: what you should know

The debt to equity ratio is another important liquidity ratio. Fundamentally, it compares a firm’s total debt in relation to its total equity. The debt...

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The debt to capital ratio

Category: Financial

The debt to capital ratio

An important liquidity ratio, the debt to capital ratio measures a company’s strategy when it comes to using its financial leverage. More specifically, it compares...

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Defining the debt to asset ratio

Category: Financial

Defining the debt to asset ratio

To begin with, the debt to asset ratio could be defined as a leverage ratio, calculating the total amount of assets financed by creditors, as...

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The Debt Service Coverage Ratio (DSCR)

Category: Financial

The Debt Service Coverage Ratio (DSCR)

The debt service coverage ratio is another financial ratio that provides insight into a company’s financial situation. Expressly, it determines a company’s capability of covering...

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Debt Ratio

Category: Financial

Debt Ratio

Today, we will concentrate our attention on the debt ratio – a solvency ratio whose purpose is to measure a company’s total liabilities as a...

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Unit sales to average market unit sales

Category: Sales

Unit sales to average market unit sales

The Unit Sales to Average Market Unit Sales metric is used by businesses to determine and track the total sales share of the industry –...

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Trial Accounts

Category: Sales

Trial Accounts

Trial Accounts refer to those customers that are interested and committed to your product. Of course, being interested and committed does not actually mean customers...

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Category: Sales

Time to break even

Each new product made by a company will come with its own costs – costs which will leave a hole in your budget until it...

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Successful to unsuccessful tenders

Category: Sales

Successful to unsuccessful tenders

As an entrepreneur that is passionate about making your business reach the highest peaks, the term ‘tender’ might already sound very familiar to you. This...

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Store Conversion Rate

Category: Sales

Store Conversion Rate

What does the store conversion rate stand for? As you should know by now, the store conversion rate is a widely utilized KPI, which effectively...

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Selling Opportunity

Category: Sales

Selling Opportunity

Online presence is of paramount importance nowadays. It’s as simple as this, if your company doesn’t have a put-together website which successfully attracts a target...

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Selling Costs to Sales Ratio

Category: Sales

Selling Costs to Sales Ratio

When calculating the selling costs to sales ratio, this is the job for the sales manager actually. Getting the calculation right will show you exactly...

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Sell-Through Rate

Category: Sales

Sell-Through Rate

Owning a business can be a lot of work because you have to do a lot of things to ensure the well-being of the company...

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Category: Sales

Sales-to-Date

When you own a business, you want it to perform greatly, and obtain success. You need to put in a lot of work to do...

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Asset Turnover Ratio

Category: Sales

Sales Value Productivity

This metric helps you learn more about the productivity of your sales team – this is done by, obviously, analyzing the total average value of...

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Web Traffic Concentration

Category: Sales

Sales Turnover Ratio

To start with, sales turnover accounts for the total revenue a business generates during a given timeframe. Essentially, this ratio is genuinely useful for all...

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Total Visits

Category: Sales

Sales Target

Have you ever thought whether there’s a way to measure and compare present sales to a target or past performance? If you did but had...

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