A Key Performance Indicator (KPI) is a performance measurement tool that is commonly used to evaluate the success of your organisation or business unit’s goals and targets. This help note describes the default KPIs available in Calxa and how to run KPI reports and charts.

Calxa Premier users have options to configure KPI settings and add custom KPI Account Groups and KPI Formulas. For details on this refer to the help note - Creating Custom KPIs.


Contents

  • Default_KPI Descriptions
  • Running KPI Reports
  • Running KPI Spreadsheet Chart

Default KPI Descriptions


Cost of Sales

The percentage of direct costs compared to sales. This ratio is commonly used in retail, manufacturing and other similar industries. There are no fixed rules on what is good and bad (but lower is generally better). Your industry association or accountant may be able to provide you with an idea of what is standard for your type of business.

Creditor Days

The average number of days it takes for an organisation to pay its creditors. A lower number is usually more desirable to maintain good relations with suppliers. If this number is increasing over time it can indicate cashflow problems.

Debt Ratio

The proportion of debt a business has relative to its assets. A value of less than 100% implies there are more assets than liabilities (debts) and is generally desirable.

Debt to Equity Ratio

The proportion of debt a business has relative to its equity. Your accountant can advise what is best for your business.

Debtor Days

The average number of days it takes for an organisation to collect its accounts. A lower number is generally better and increasing numbers over time can lead to cashflow difficulties.

Equity Multiplier

The value of a business’s total assets per dollar of owner’s equity.  

Gross Profit Margin

Gross Profit (Income – Cost of Sales) as a proportion of Income. A higher percentage is generally better. This ratio is the inverse of the Cost of Sales KPI (the two together will add up to 100%).

Inventory Turnover Days

The average number of days it would take for a business to sell its inventory on hand.

Operating Profit

Operating Profit (Income less Cost of Sales less Expenses) as a proportion of Income. This would normally exclude interest and taxes and abnormal income or expenses.

Return on Assets

How profitable a business is relative to its assets? Generally a higher value is preferred.

Return on Equity

How profitable a company is relative to its owners’ equity? Generally a higher value is preferred but this can’t be easily compared between different organisations - that will vary according to whether the business has been funded by debt or equity.

Total Debt to Income Ratio

The amount of debt a business has relative to its total income.  Your accountant can advise what is best for your business.

Wages to Turnover

For each dollar of income, the amount that is spent on wages and associated staff costs. By default, this includes Wages and Superannuation accounts listed under Default Accounts.

Working Capital Ratio

Short term assets compared to short term debt - a value of less than 100% can indicate short term cashflow problems. For every dollar of debt, this ratio indicates the value of current assets you have to cover it. 

 

Running KPI Reports


  1. Click on the Reports button.

    run_kpi_1


  2. Key Performance Indicators can be included as additional information rows or on their own in some reports.

    Select a report that supports KPI reporting.

    All report templates in the following groups support KPIs:
    1. Budget Summary (1 budget version)
    2. Budget Summary (2 budget versions)
    3. Spreadsheet Profit & Loss (1 budget version)
    4. Spreadsheet Profit & Loss (2 budget versions)

      run_kpi_2

      Note: Budget Summary reports compare budgeted to actual KPI results. Spreadsheet reports provide multi period reports and can therefore show movement in KPIs over time.


  3. Configure the Report Criteria as per the help note article - Running Reports.

  4. When you tick the Show Key Performance Indicators option a list of KPIs will be provided.

    run_kpi_4

    Note: The list includes all default and custom KPIs and is displayed alphabetically. The KPIs will also be ordered alphabetically in your report.


  5. Select the appropriate template from the Report Templates list.

    run_kpi_5


  6. Click Display Report to generate the report


    Running KPI Spreadsheet Chart

    The KPI Spreadsheet Chart represents 12 months of KPI data in a bar graph. You can optionally include actuals and budgets and last year’s actuals and budgets.

    1. Select the KPI Spreadsheet Chart from the Reports list.

      kpi_spread_1


    2. Configure the Chart Criteria as per the help note – Display Save and Print Charts.
      1. Chose the KPI to display.
           
         kpi_spread_2
         

        Note: Only a single KPI can be displayed in a chart. Additional KPI charts be generated separately.
          
      2. Select the Display Amounts to include in the chart. The following amounts are available
        1. Budgets – displays KPIs calculated on budget values for the reported period
        2. Actuals – displays KPIs calculated on actual values for the reported period
        3. Last Yr. Budgets – displays KPis calculated on budget values 12 months prior to the reported period
        4. Last Yr. Actuals – displays KPis calculated on actual values 12 months prior to the reported period

      3. Click Display Report to generate the chart.