Ninety's Default Financial Metrics
Descriptions of each of Ninety's default financial metrics and how their reporting works.
Terms that appear with an asterisk (*) are configurable and may differ from your Ninety. Explore our glossary of terms.
Ninety automatically adds 17 financial metrics to the Senior Leadership Team's quarterly Scorecard. These are items we have observed as being extremely important to company growth. This article explains these definitions and how their data can be used throughout the system.
- Revenue. Money collected or expected for providing services. Revenues (net worth resulting from a transaction) can be found on the Income Statement.
- Gross Profit. Gross profit is the profit a company makes after deducting the costs associated with creating and selling its products or the costs associated with providing its services (investopedia.com). Gross Profit Margin (GPM) is the gross profit ratio to revenue.
- SG&A. Selling, general, and administrative expense (SG&A) is reported on the income statement as the sum of all direct and indirect selling expenses and all general and administrative expenses (G&A) of a company (investopedia.com).
- EBITDA. Or Earnings Before Interest, Taxes, Depreciation, and Amortization, is a measure of a company's overall financial performance and is used as an alternative to the net income in some circumstances (investopedia.com).
- Net Profit. Net profit is the measurement of a company's profit once operating costs, taxes, interest, and depreciation have all been subtracted from its total revenues. The term is often referred to as a company's "bottom line" and may also be described as "net earnings" or "net income".
- % of Regrettable Turnover. Regrettable turnover is when an employee's departure from a company hurts the team or organization. Measuring regrettable turnover is a more accurate way to measure turnover to determine an organization's health .
- Cash. A current asset account includes currency, coins, checking accounts, and undeposited checks received from customers. The amounts must be unrestricted (accountingcoach.com).
- Net Working Capital. Net working capital is the amount (as opposed to being a ratio) remaining after subtracting a company's total amount of current liabilities from its total amount of existing assets. Hence, the formula is net working capital = current assets - current liabilities — net working capital is also known as working capital (accountingcoach.com).
- Debt. Debt is an amount of money borrowed by one party from another. Many corporations and individuals use debt to make large purchases they could not afford under normal circumstances (investopedia.com).
- Equity. The amount of a practice's total assets (not financed with debt). Depending on the legal model and ownership, equity may be referred to as net assets, shareholder's equity, or proprietor's net worth. Equity can be found on your Balance Sheet.
- # of Employees. Net numbers of employees in the organization.