Certified Specialist Business Intelligence Practice Test

Which of the following is a key performance indicator in finance analytics?

1. Patient outcomes

2. Financial ratios

3. Employee satisfaction surveys

4. Clinical treatment protocols

The correct answer is: Financial ratios

A key performance indicator (KPI) in finance analytics is a measurable value that demonstrates how effectively a company is achieving its primary financial objectives. Financial ratios are essential tools in this area as they provide insights into a company's financial health, profitability, liquidity, efficiency, and overall performance relative to its peers. These ratios, such as the current ratio, return on equity, and debt-to-equity ratio, allow financial analysts and decision-makers to assess strengths and weaknesses in a business's financial status. In contrast, patient outcomes focus on health-related results and are more relevant to healthcare analytics. Employee satisfaction surveys measure employee engagement and overall workplace satisfaction, which pertain to human resources analytics rather than finance. Clinical treatment protocols are guidelines used in the healthcare field to dictate best practices for patient care, not directly involving financial performance. Each of these options serves essential roles in their respective sectors, but financial ratios specifically serve as critical KPIs within finance analytics.