ELI5: Explain Like I'm 5

Performance indicator

A performance indicator is something that shows how well something is doing. It's like getting a grade in school to show how well you understand the class. For example, a company might look at its finances and use a performance indicator to calculate whether its business is going well or not. The performance indicator will show how much money the company is making, how much it is spending, how quickly it is growing, and other important information about the company.