Test Coverage is a critical KPI that reflects the extent to which software tests cover the codebase. High test coverage can lead to improved operational efficiency and reduced defects, ultimately enhancing the financial health of the organization. It influences business outcomes such as product reliability, customer satisfaction, and time-to-market for new features. Companies with robust test coverage often experience lower costs associated with bug fixes and maintenance. By measuring this KPI, organizations can make data-driven decisions that align with strategic goals and improve overall ROI.
What is Test Coverage?
The percentage of code that has been tested by the QA team. A higher test coverage indicates better quality control.
What is the standard formula?
(Combined Coverage of Code, Requirements, and Risks) / Total Scope for Testing
This KPI is associated with the following categories and industries in our KPI database:
High test coverage indicates thorough testing, which often correlates with fewer defects in production. Conversely, low coverage may suggest potential risks and untested areas that could lead to failures. An ideal target threshold typically hovers around 80% coverage, balancing resource allocation and risk management.
Many organizations underestimate the importance of maintaining high test coverage, leading to increased technical debt and operational inefficiencies.
Enhancing test coverage requires a strategic approach that prioritizes both quality and efficiency in testing practices.
A mid-sized software firm, Tech Innovations, was struggling with a high defect rate in its product releases. With test coverage languishing at 55%, the company faced mounting customer complaints and increased support costs. Recognizing the need for change, the CTO initiated a comprehensive review of their testing processes and coverage metrics.
The team adopted a new strategy focused on enhancing test automation and integrating testing into the CI/CD pipeline. They invested in modern testing frameworks and tools, enabling developers to write and run tests more efficiently. Additionally, they established a culture of accountability, where each team member was responsible for maintaining test coverage for their code.
Within 6 months, Tech Innovations increased its test coverage to 85%, significantly reducing the number of defects reported post-release. Customer satisfaction scores improved, and support costs dropped by 30%. The enhanced test coverage not only streamlined the development process but also positioned the company for faster feature releases, ultimately driving revenue growth.
Every successful executive knows you can't improve what you don't measure.
With 20,780 KPIs, PPT Depot is the most comprehensive KPI database available. We empower you to measure, manage, and optimize every function, process, and team across your organization.
KPI Depot (formerly the Flevy KPI Library) is a comprehensive, fully searchable database of over 20,000+ Key Performance Indicators. Each KPI is documented with 12 practical attributes that take you from definition to real-world application (definition, business insights, measurement approach, formula, trend analysis, diagnostics, tips, visualization ideas, risk warnings, tools & tech, integration points, and change impact).
KPI categories span every major corporate function and more than 100+ industries, giving executives, analysts, and consultants an instant, plug-and-play reference for building scorecards, dashboards, and data-driven strategies.
Our team is constantly expanding our KPI database.
Got a question? Email us at support@kpidepot.com.
What is considered good test coverage?
Good test coverage typically ranges from 70% to 90%. However, the focus should be on quality tests rather than just achieving a high percentage.
How can I measure test coverage?
Test coverage can be measured using various tools that analyze code and determine which parts have been tested. These tools provide reports that highlight coverage percentages and areas needing attention.
Does high test coverage guarantee bug-free software?
No, high test coverage does not guarantee bug-free software. It ensures that more code is tested, but the quality of the tests and their ability to catch edge cases is equally important.
How often should test coverage be reviewed?
Test coverage should be reviewed regularly, ideally at the end of each sprint or release cycle. This ensures that any new code is adequately tested and that coverage remains high.
Can I improve test coverage without automated tests?
Yes, manual tests can contribute to test coverage, but they are often less efficient. Combining manual and automated tests is the best approach for comprehensive coverage.
What are the risks of low test coverage?
Low test coverage increases the likelihood of defects in production, leading to customer dissatisfaction and higher support costs. It can also hinder the speed of development and deployment.
Each KPI in our knowledge base includes 12 attributes.
The typical business insights we expect to gain through the tracking of this KPI
An outline of the approach or process followed to measure this KPI
The standard formula organizations use to calculate this KPI
Insights into how the KPI tends to evolve over time and what trends could indicate positive or negative performance shifts
Questions to ask to better understand your current position is for the KPI and how it can improve
Practical, actionable tips for improving the KPI, which might involve operational changes, strategic shifts, or tactical actions
Recommended charts or graphs that best represent the trends and patterns around the KPI for more effective reporting and decision-making
Potential risks or warnings signs that could indicate underlying issues that require immediate attention
Suggested tools, technologies, and software that can help in tracking and analyzing the KPI more effectively
How the KPI can be integrated with other business systems and processes for holistic strategic performance management
Explanation of how changes in the KPI can impact other KPIs and what kind of changes can be expected