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How to Choose the Right KPIs for Sales, Inventory & Finance Dashboards
Stop building dashboards nobody uses. Learn how to pick KPIs for sales, inventory, and finance teams — with simple definitions and examples.
Abhishek Raj
June 24, 202610 min read
Why most dashboards fail
A dashboard fails when it shows too many numbers and answers no clear question.
Before opening Power BI, ask stakeholders:
- What decision do you make with this report?
- How often do you need it? (daily, weekly, monthly)
- What action do you take when a number goes red?
Good KPIs are few, clear, and tied to action.
What is a KPI?
KPI = Key Performance Indicator.
It is a number that tells you if the business is doing well or poorly.
Bad KPI: "Total rows in database" — nobody can act on this.
Good KPI: "On-time delivery rate %" — if it drops, logistics team investigates.
Every KPI needs:
- Clear definition (how is it calculated?)
- Owner (who is responsible?)
- Target (what is "good"?)
- Frequency (daily/weekly/monthly)
Sales dashboard KPIs
| KPI | Formula (simple) | Why it matters |
|---|---|---|
| Total Revenue | Sum of sales amount | Overall performance |
| Revenue Growth % | (This month − Last month) / Last month | Trend direction |
| Average Order Value | Total revenue ÷ Number of orders | Basket size health |
| Conversion Rate | Orders ÷ Leads × 100 | Sales funnel efficiency |
| Top 10 Customers % | Revenue from top 10 ÷ Total revenue | Dependency risk |
Design tip: Show revenue trend as a line chart and category breakdown as a bar chart. Keep one page for executives (4 KPIs max).
Inventory dashboard KPIs
| KPI | Formula (simple) | Why it matters |
|---|---|---|
| Stock on Hand | Current quantity by SKU | Availability |
| Days of Inventory | Stock ÷ Avg daily sales | How long stock lasts |
| Stock-out Rate | Items with zero stock ÷ Total SKUs | Lost sales risk |
| Inventory Turnover | COGS ÷ Average inventory | Efficiency |
| Dead Stock Value | Value of items not sold in 90+ days | Cash blocked |
Design tip: Use conditional formatting — red when stock-out rate exceeds 5%.
Finance dashboard KPIs
| KPI | Formula (simple) | Why it matters |
|---|---|---|
| Gross Margin % | (Revenue − COGS) / Revenue | Profitability |
| Operating Expenses | Sum of OPEX lines | Cost control |
| Cash Balance | Bank + liquid assets | Liquidity |
| Accounts Receivable Days | (AR ÷ Revenue) × 365 | Collection speed |
| Budget vs Actual % | Actual ÷ Budget × 100 | Planning accuracy |
Design tip: Finance users often want drill-down to voucher level — plan for detail pages behind summary KPIs.
The 5–7 rule
Never show more than 5–7 KPIs on one screen.
If stakeholders ask for 20 metrics, create:
- Page 1: Executive summary (5 KPIs)
- Page 2: Sales detail
- Page 3: Inventory detail
- Page 4: Finance detail
How to document KPIs (template)
For each KPI, write a one-page definition:
KPI Name: On-Time Delivery Rate
Formula: On-time shipments / Total shipments × 100
Data Source: SQL view vw_ShipmentStatus
Owner: Logistics Manager
Target: ≥ 95%
Refresh: Daily at 7 AM
Store this in a shared document or Power BI tooltip. It prevents arguments about "wrong numbers."
Workshop exercise (do this with your team)
- List all metrics stakeholders currently receive
- Mark each as Must have, Nice to have, or Remove
- Keep only Must have on the main dashboard
- Validate formulas against Excel reports for 2 weeks before go-live
Final takeaway
Great dashboards are not about fancy charts — they are about the right KPIs for the right audience. Start with one department, nail 5 KPIs, get daily usage, then expand.
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