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 how to run KPI reports and charts. It also provides descriptions for the default KPIs provided in Calxa.
Calxa Premier users have options to build their own custom KPIs. For details refer to the KPI Builder help note.
Running KPI Reports & Charts
- Browse to the report Builder as outlined in - Select a Report template.
- To find reports or charts that support KPIs use the 'KPI' value filter option.
You may wish to use additional filter options as outlined in the help article from step 1.
- Select the desired template by clicking on a tile to run that report or chart.
- Configure the Report Criteria as per the help note article - Set Report Criteria.
- In some reports KPIs are an optional part of the criteria. In such cases you need to toggle the Show KPIs option into the green position.
- To choose what KPIs you would like to include click the settings option.
- Use the checkbox to select the KPI(s) to include in the report or chart.
Note: See the list of default KPIs and their descriptions at the end of this article.
- You can optionally use the search box to filter the KPI list.
- Click the tick to select or deselect all KPIs in the filtered list.
- Click the REFRESH option to run the report or chart with the chosen KPIs.
Default KPI Descriptions
Below is the full list of default KPIs available in Calxa with the description of what they represent. Calxa Premier users can also create custom KPIs via the KPI Builder.
The amount of income you need to earn to cover both your variable and fixed costs.
End of month closing bank balance. Can be an actual value or projected based on your Cashflow forecast.
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.
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.
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.
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.
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.
Net Profit Margin
Net Profit (All Income less All Expenses) as a proportion of Income. A higher percentage is generally better.
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
Shows how profitable a business is relative to its assets. Generally a higher value is preferred.
Return on Equity
How profitable is a company 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.