16 Cash Flow KPIs You Should Know
Your Business Success starts with Revenue and ends with Cash Flow.
Here are 16 Cash Flow KPIs to Know:
1. Sales Revenue Forecast:
🎯 The revenue you expect to generate y/y from normal business operations (e.g. from sales of products and services)
2. Sales Revenue Budget to Actuals:
🎯 A comparison of the revenues you budgeted for the period against those you actually achieved, typically broken down by product or service line, and including variance analysis
3. Sales Pipeline:
🎯 A list of your current sales opportunities in the process of being closed, together with their individual sales values and their probability of closing during the period.
4. Sales backlog:
🎯 A list of your signed sales deals currently in process of execution (i.e. future revenues)
5. Gross profit:
🎯 The amount of revenue remaining after accounting for your cost of goods sold or cost of sales (COGS/COS).
6. Gross profit margin:
🎯 The percentage of your revenue remaining after accounting for the cost of goods sold or cost of sales.
7. Net profit:
🎯 The amount of revenue remaining after accounting for your cost of goods sold or cost of sales (COGS/COS) as well as your operating expenses (OPEX).
8. Net profit margin:
🎯 The percentage of your revenue remaining after accounting for the cost of goods sold or cost of sales as well as your operating expense.
9. Operating Cash Flow (OCF):
🎯 The amount of cash generated by your ongoing business operations.
10. Financing Cash Flow:
🎯 The amount of cash generated by your financing activities (i.e. borrowing and repaying debt, issuing and repurchasing equity, paying dividends)
11. Investing Cash Flow:
🎯 The amount of cash generated by your investing activities (i.e. PPE, investments in other companies, investments in marketable securities)
12. Days Sales Outstanding (DSO):
🎯 The average number of days you take to collect on outstanding customer (AR) balances
13. Days Inventory Outstanding (DIO):
🎯 Average number of days you take to sell your inventory
14. Days Payable Outstanding (DPO):
🎯 Average number of days you take to settle outstanding supplier (AP) invoices
15. Cash Conversion Cycle (CCC):
🎯 The average number of days it takes you to convert your inventory investment into sales, your sales into receivables and your receivables into cash.
16. Free Cash Flow (FCF):
🎯 Net Income + Interest + Taxes + Depreciation/Amortization +/- Non-Cash Items +/- Changes in Working Capital +/- Changes in Fixed Assets
What would you add?
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