Introducing Docyt's New KPI Feature
Docyt has introduced a powerful new feature highlighting several Key Performance Indicators (KPIs) crucial for businesses to track and manage their performance effectively. These KPIs are carefully selected to provide comprehensive insights into various aspects of your business, helping you make informed decisions that drive growth and efficiency. This is accessible from the Docyt Business dashboard.
Below are the KPIs and their significance. Click on each KPI to access its details.
1. Payroll as Percentage of Revenue
What it is:
Payroll as a Percentage of Revenue is a financial metric used to measure the proportion of a company's revenue spent on employee wages, salaries, and benefits. It helps assess how efficiently a company manages its labor costs relative to its sales or revenue. A lower percentage indicates better cost efficiency, while a higher percentage could suggest higher labor expenses compared to revenue.
Data Origin:
- Industry: Generic
- Report: Management Report: Owner’s Report (Owner’s Operating Statement)
2. Gross Margin
What it is:
It indicates how efficiently a company produces and sells its goods by reflecting the profitability of its core activities before accounting for operating expenses, interest, and taxes. This percentage represents how much of each dollar of revenue the company retains after covering direct costs. A higher gross margin means the company is more efficient at converting revenue into profit before covering other expenses.
Data Origin:
- Industry: Generic
- Report: Management Report: Owner’s Report (Owner’s Operating Statement)
3. Operating Margin
What it is:
Operating margin is a financial metric that measures the percentage of revenue remaining after covering all operating expenses, such as wages, rent, utilities, and depreciation, but before accounting for interest and taxes. It shows how efficiently a company is managing its operations and core business activities to generate profit. A higher operating margin indicates better profitability and cost management from the company's day-to-day operations. It helps assess how much revenue is being turned into operating profit before non-operational expenses are considered.
Data Origin:
- Industry: Generic
- Report: Management Report: Owner’s Report (Owner’s Operating Statement)
4. EBITDA
What it is:
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to evaluate a company's operating performance by focusing on the core profitability of the business before considering the impact of financing decisions, tax environments, and non-cash accounting items like depreciation and amortization
Data Origin:
- Industry: Generic
- Report: Management Report: Owner’s Report (Owner’s Operating Statement)
5. Quick Ratio
What it is:
Measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventories. A quick ratio greater than 1 indicates the company has enough liquid assets to cover its short-term liabilities. In contrast, a ratio below 1 suggests it may struggle to meet its obligations without selling off long-term assets or inventory.
Data Origin:
- Industry: Generic
- Report: Management Report: Balance Sheet Statement
- Data collected from the Balance sheet - Inventory, Prepaid Expenses, Total Current Assets and Total current liabilities.
6. Cash Flow
What it is:
Cash flow refers to the movement of money into and out of a business. It measures the company's liquidity by tracking how much cash is generated and used during a specific period. Cash flow is crucial because it indicates whether a company can cover its expenses, reinvest in its operations, pay debts, and provide returns to shareholders. It is calculated by summing the cash flows from three main activities: Operating, Investing, and Financing.
Data Origin:
- Industry: Generic
- Report: Management Report: Cash Flow
- Data collected from Cash flow: Cash and temporary cash investment, End of Period.
7. Operating Expenses
What it is:
Operating expenses (OPEX) are the costs a business incurs during its day-to-day operations to generate revenue. These expenses are essential for running the core business activities but are not directly tied to the production of goods or services.
Data Origin:
- Industry: Generic
- Report: Management Report: Owner’s Report
8. Net Profit
What it is:
Net profit, also known as net income or net earnings, is the amount of money a company has left after subtracting all its expenses, including operating expenses, interest, taxes, and any other costs, from its total revenue. It represents the company's total profit and is a key indicator of overall financial performance.
Data Origin:
- Industry: Generic
- Report: Management Report: Owner’s Report
9. Total Expenses
What it is:
Total expenses refer to the sum of all costs incurred by a business during a specific period to operate and maintain its activities. Total expenses are subtracted from total revenue to determine net profit or net income. Managing and controlling total expenses is crucial for maintaining profitability and achieving financial stability.
Data Origin:
- Industry: Generic
- Report: Management Report
10. Total Revenue
What it is:
Total revenue is the total amount of money a company earns from its business activities before any expenses are subtracted. It includes all income generated from sales of goods or services, and may also encompass other sources of income such as interest, royalties, or dividends.
Data Origin:
- Industry: Generic
- Report: Management Report
