Tag Archives: net profit

Rate of client relationships producing significant net profit

Definition:
Gives an indication of the profitability of customers. If a certain percentage of customers has no significant net profit, the debtor-risk for the organization will increase.

Calculation:
Relations with significant net profit / Total number of relationships

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability