Lagging indicator

A lag­ging indi­ca­tor is a mea­sur­able fac­tor that reflects the his­tor­i­cal per­for­mance or out­comes of an orga­ni­za­tion or project. It is use­ful for assess­ing past per­for­mance but less effec­tive in pre­dict­ing future trends. Com­mon lag­ging indi­ca­tors include unem­ploy­ment rates, prof­it mar­gins, and cus­tomer sat­is­fac­tion met­rics. In case of part­ner­ships rev­enue is often under­stood as a lag­ging indicator.