KPI name: Assets performance
Definition: This KPI measures the financial performance of all the money invested in the company. Number of capital rotation in turnover = ANNUAL TURNOVER / ASSETS VALUE
Assets value is the first indicator when performing an overall evaluation of a company. The higher the value of this KPI, the higher the value of the company’s profitability.
Variation and related KPI’s:
Current assets rotation
Fixed assets rotation
Focus and targets: This KPI focuses on activity performance, not on the value of company properties. Maybe it is not very relevant for small businesses, but it’s very useful to identify assets that don’t perform in generating profit. Any investments in expensive cars or real estate properties that are not generating profit will affect the assets performance and the overall performance of the company.
Adrian Abrudan, Head of Strategy & Research