A5 KPI Report

This workpaper collates the Key Performance Indicators calculated from the IR10 into an easy to view report which can be used to assess the performance of the business and aid in discussions with the client.

KPI results

The current year ratio has been included on the report and an arrow symbol populates based on whether the result is greater than, less than or equal to the industry median.

Prior year comparison

Space has been provided to enter the ratio for the prior year. Unlike the current year ratios, these have not been automatically populated for you.

To enter these into the report, simply enter the result into the grey box of the relevant KPI. The box will then become transparent for presentation to the client. If you do not wish to display simply delete the cell containing “Prior year:” in column J.

Ratio definitions

The definition of the ratio has been included on the report, to remove these from the version presented to the client, simply click the “Display ratio definitions” link and the definitions will hide or display according to your preference.

Recommendation

A section has been included for you to provide a recommendation to your client. Column M displays whether your client’s result was greater than, less than or within the range of the IRD benchmarks provided. NB: This observation will not automatically print on the report for your client as it is set outside the print area.

The ranges were determined for each industry and were designed to encompass the majority of taxpayer’s data for the 2013/2104 year. If your client’s data is outside of this range there is a higher possibility that your client is considered outside of the norm by Inland Revenue.

Once you have entered your recommendation, the layout will reformat for ease of printing.

KPIs included

See our KPI analysis page for details of each KPI, including the formulas used and definitions.

  • Gross profit margin
  • Net profit margin
  • Salaries and wages turnover ratio
  • Return on total assets
  • Return on equity
  • Current ratio
  • Quick ratio
  • Debtor days - this ratio has not been benchmarked by Inland Revenue, however is a useful KPI to discuss with the client.
  • Stock turnover:
  • Liability structure

KPIs not included

The two KPIs below have not been included as they are alternative ways to view KPIs already included.

  • Inventory turnover period: Stock turnover expressed in days rather than times
  • Debt ratio: Displays how much of the company is funded by debt as opposed to owners’ equity (see liability structure)