Key Performance IndicatorKPI

A key performance indicator is a measurable figure used to track whether a business is meeting a stated goal.

Also called KPI, KPIs, performance metric.

Managers pick a small set of KPIs so they can see progress without drowning in data. Examples include revenue growth, customer retention, loan non-performance, or on time delivery. Good KPIs link to strategy and can be measured reliably over time. Vanity metrics that look good but do not drive results waste attention. Investors often listen for which KPIs management emphasises on earnings calls.

Key takeaways

A KPI is a chosen scoreboard, not a magic measure of quality.
Fewer, well defined metrics beat long unfocused dashboards.
Definitions must stay consistent so trends mean something.
External investors should test whether reported KPIs match real cash and profit.

Related terms

Gross MarginGross margin is the share of sales left after the direct cost of making or buying the goods sold.
Earnings Per ShareA company's net profit divided by its number of shares, the profit attributable to each single share.
Income StatementAn income statement shows a company's revenue, costs, and profit or loss over a defined reporting period.
Market CapitalizationThe total market value of a company's shares, its share price multiplied by the number of shares outstanding.

Key Performance Indicator in our reporting

Ethio Telecom Revenue Climbs 33.2% to ETB 215.8 Billion, But Annual Report Reveals Key Growth Targets Missed
Ahadu Bank’s Gross Profit Jumps 94.2% to ETB 1.15 Billion in FY2025/26
Safaricom Ethiopia Revenue Jumps 58.3% as Customer Growth and Data Usage Accelerate