Question

Select a key performance indicator (KPI) for an industry and measure 5 companies against it.

Answer 1

Key performance indicator are the indicators which depict in performance of a company with regards to it's peers in an industry.It reflects the performance of the company on a key performance Matrix against it's competitors.

I select profit margin for different retail companies in Indian markets. Profit margins are the margin of profits against net sales of the company. The higher the net profit margin of the company , better it is for the performance of the company. These are the 5 Indian companies I'm analysing -

1.Hindustan Unilever- HUL profit margin is 16.69 % in the previous year on a high volume growth.

2. Nestle India - Nestle India profit margin has been 20.57% in the previous year on good volume growth.

3. Imperial tobacco company- ITC Profit Margin has been 27.70 % on the net profit basis in the previous year of 2019 on a weak base.

4. Dabur India - Profit margin for Dabur India has been 20.15 percent on the net basis on a good YOY growth.

5. Godrej consumer - Profit margin for Godrej consumer has been 30% on a very low base.

So the complete sector has been on a Year on Year growth when it comes to growth in profit margin.