With financial markets facing heightened uncertainty, organizations must adopt a more strategic approach to ensure stability and resilience. Adverse macroeconomic conditions—such as inflation, recessions, and stock market fluctuations—continue to challenge financial performance. 

According to the International Monetary Fund (IMF), high economic uncertainty can increase financial market volatility, delay investment decisions, and amplify risks to economic growth, making financial resilience more critical than ever​.

To support finance professionals in navigating these challenges, The KPI Institute’s Top 25 Finance KPIs – 2024 Edition provides a curated selection of key performance indicators (KPIs) designed to foster financial health, optimize resource allocation, and drive organizational growth. 

The Top 25 KPIs 2024 report series is an extensive collection of the 25 most commonly utilized KPIs from various industries and functional areas. The KPIs are compiled based on viewership data from smartKPIs.com between January 2023 and April 2024, this series provides a snapshot of the latest trends in performance measurement.

The report contains a comprehensive analysis of the Performance Measurement Concept Framework, the most recent data on KPI challenges and usage contexts, and 10 strategies for successful KPI implementation. Moreover, each KPI feature has been thoroughly revised through extensive research to ensure that the information accurately captures the latest trends and changes in the evolving business environment. The 2024 edition also offers an enhanced documentation template optimized to present the most pertinent details about each KPI.

Whether you are looking to refine an existing performance measurement system or integrate KPIs into your financial strategy, the Top 25 Finance KPIs – 2024 Edition may serve as a valuable starting point for achieving long-term stability in 2025. As a snapshot, here are five of them.

Highlights

1. % Capital acquisition ratio – measures the ability of a company to finance capital expenditures from internal sources. It indicates the availability of internal funding sources to support capital needs, as these are generally more cost-effective and less risky than external financing.
2. # Basic earning power ratio (BEP) – measures the value of the earnings before interest and taxes as a ratio to the company’s assets. Its purpose is to provide a benchmark for comparing firms with varying tax structures and levels of financial leverage, enabling more accurate financial analysis.
3. # Labor multiplier – measures the revenue earned per each dollar spent on employees. Its objective is to evaluate how effectively a firm generates revenue from its labor costs, providing insight into the return on its workforce investment.
4. % Return on funds employed (ROFE) – measures the company’s ability to generate profits from the funds it invests. Indicates the company’s effectiveness in capital allocation. The % ROFE values can vary significantly across industries and are influenced by management strategies and macroeconomic conditions.
5. # Capital expenditure to sales ratio – measures the level of investments a company is making to generate one dollar in sales. Its purpose is to assess the scale of capital investment within a company. Capital expenditures reflect the funds allocated for acquiring fixed assets, excluding those related to acquisitions.

Dive into the practical applications of these key indicators and explore the remaining finance KPIs by getting your copy of the Top 25 Finance KPIs – 2024 Edition report. Available for digital purchase on the TKI Marketplace and in print on Amazon.