KPI of the Day – Accounting Performance: $ Claims severity
Definition
Measures the total cost of claims incurred over the period.
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Measures the total cost of claims incurred over the period.
Measures the proportion of each dollar of revenue (sales) that the entity retains as gross profit.
Measures the remaining balance after deducting cash outflows from cash inflows.
Measures the company’s operating income, i.e. the income resulted from the company’s primary business operations. Interest and taxes are excluded, because they include the effect of factors other than the profitability of operations.