Finance KPI Cheat Sheet: 45 Key Metrics & Formulas You Need

Key Performance Indicators (KPIs) are the backbone of financial decision-making. But most KPI lists miss two critical elements:

? Why the KPI matters (its goal) ? How to calculate it (the formula)

This cheat sheet provides both! Whether you're in accounting, cash flow management, SaaS, or investment analysis, these 50 KPIs will help you measure financial performance effectively.

?? Pro Tip: Pick 3-4 key KPIs that align with your business goals and use them in a quadrant dashboard. A standard approach includes: ? Revenue Growth – Business expansion indicator ? Net Profit Margin – Profitability measure ? Operating Cash Flow – Liquidity health tracker ? Employee Engagement – Workforce productivity gauge

What would your top 4 KPIs be? Let’s explore the most valuable KPIs by category. Choose wisely! Just pick the numbers that tell the right story!

?? Accounting KPIs: Measuring Financial Stability

These KPIs track efficiency in managing financial operations.

?? 1. Debt-to-Equity Ratio – Measures financial leverage.

?? Formula: Total Liabilities ÷ Shareholder’s Equity

?? 2. Invoice Processing Time – Efficiency of payment cycles.

?? Formula: Total Invoice Processing Time ÷ Number of Invoices

?? 3. Working Capital Ratio – Short-term liquidity indicator.

?? Formula: Current Assets ÷ Current Liabilities

?? 4. Net Profit Margin – Profitability after expenses.

?? Formula: (Net Profit ÷ Revenue) × 100

?? 5. Return on Equity (ROE) – Measures shareholder returns.

?? Formula: Net Income ÷ Shareholder’s Equity

?? 6. Gross Profit Margin – Shows profitability before operating expenses.

?? Formula: (Revenue - Cost of Goods Sold) ÷ Revenue × 100

?? 7. Accounts Receivable Turnover – Speed of collecting customer payments.

?? Formula: Net Credit Sales ÷ Average Accounts Receivable

?? 8. Fixed Asset Turnover – Efficiency in using assets to generate revenue.

?? Formula: Net Sales ÷ Average Fixed Assets

?? 9. Accounts Payable Turnover – Measures how quickly a company pays suppliers.

?? Formula: Total Supplier Purchases ÷ Average Accounts Payable

?? 10. Inventory Turnover – Measures inventory efficiency.

?? Formula: Cost of Goods Sold ÷ Average Inventory

?? Cash Flow KPIs: Tracking Liquidity & Financial Health

Strong cash flow ensures stability and growth.

?? 11. Operating Cash Flow – Measures cash generated by operations.

?? Formula: Net Income + Non-Cash Expenses + Changes in Working Capital

?? 12. Days Payables Outstanding – Time taken to pay suppliers.

?? Formula: (Accounts Payable ÷ Cost of Goods Sold) × 365

?? 13. Average Days Delinquent – Measures overdue payments.

?? Formula: (Total Days Late ÷ Number of Late Payments)

?? 14. Days Sales Outstanding (DSO) – How quickly customers pay invoices.

?? Formula: (Accounts Receivable ÷ Total Sales) × 365

?? 15. Days of Inventory Outstanding – Average number of days inventory is held.

?? Formula: (Inventory ÷ Cost of Sales) × 365

?? 16. Cash Burn Rate – Speed at which cash reserves are used.

?? Formula: Operating Expenses ÷ Number of Months

?? 17. Free Cash Flow – Available cash after capital expenditures.

?? Formula: Operating Cash Flow - Capital Expenditures

?? 18. Cash Conversion Cycle (CCC) – Measures efficiency in turning cash into sales.

?? Formula: DSO + Days of Inventory Outstanding - Days Payables Outstanding

?? 19. Cash Reserves in Days – Measures liquidity cushion.

?? Formula: Cash Reserves ÷ Daily Operating Expenses

?? 20. Overdues Ratio – Percentage of overdue accounts.

?? Formula: (Total Overdue Amount ÷ Total Receivables) × 100

???? CEO KPIs: High-Level Business Performance Metrics

These KPIs help executives make strategic decisions.

?? 21. Revenue Growth – Measures business expansion.

?? Formula: (Current Revenue - Previous Revenue) ÷ Previous Revenue × 100

?? 22. Market Share – Competitive positioning indicator.

?? Formula: (Company Sales ÷ Total Industry Sales) × 100

?? 23. Employee Productivity – Measures output per employee.

?? Formula: Revenue ÷ Number of Employees

?? 24. Innovation Index – Tracks success of new product launches.

?? Formula: Revenue from New Products ÷ Total Revenue

?? 25. Brand Equity – Measures brand value perception.

?? Formula: Customer Perception Score + Market Share Growth

?? 26. Market Expansion Rate – Tracks new market penetration.

?? Formula: New Market Revenue ÷ Total Revenue × 100

?? 27. Sustainability Metrics – Tracks ESG performance.

?? Formula: Carbon Emissions Reduction % or Energy Efficiency Improvements

?? 28. Employee Engagement – Measures workforce morale.

?? Formula: (Engaged Employees ÷ Total Employees) × 100

?? 29. Employee Turnover – Tracks workforce retention.

?? Formula: (Employees Left ÷ Total Employees) × 100

?? 30. Cash Flow Stability – Measures ability to cover liabilities.

?? Formula: Operating Cash Flow ÷ Total Liabilities

?? SaaS KPIs: Subscription Business Performance Metrics

Essential KPIs for SaaS companies.

?? 31. Customer Lifetime Value (CLV) – Measures long-term revenue per customer.

?? Formula: Avg Purchase Value × Transactions × Customer Lifespan

?? 32. SaaS Quick Ratio – Tracks revenue growth vs. churn.

?? Formula: (New MRR + Expansion MRR) ÷ (Churn MRR + Contraction MRR)

?? 33. New Buyer Growth Rate – Measures new customers.

?? Formula: (New Buyers ÷ Total Buyers) × 100

?? 34. ARR Per Employee – Measures revenue efficiency.

?? Formula: Annual Recurring Revenue ÷ Number of Employees

?? 35. Customer Churn Rate – Percentage of customers lost.

?? Formula: (Lost Customers ÷ Total Customers) × 100

?? 36. Runway – Months until cash runs out.

?? Formula: Cash Balance ÷ Monthly Burn Rate

?? 37. Customer Acquisition Cost (CAC) – Cost to acquire a customer.

?? Formula: Marketing & Sales Costs ÷ New Customers Acquired

?? 38. Monthly Recurring Revenue (MRR) – Recurring subscription revenue.

?? Formula: Total Active Subscriptions × Avg Revenue Per Subscription

?? 39. Average Revenue Per User (ARPU) – Revenue per customer.

?? Formula: Total Revenue ÷ Number of Customers

?? 40. Total Addressable Market (TAM) – Potential market size.

?? Formula: Total Market Demand × Avg Customer Revenue

?? Investor KPIs: Evaluating Company Performance

?? 41. Earnings Per Share (EPS) – Measures profitability per share.

?? Formula: Net Income ÷ Total Shares Outstanding

?? 42. Quick Ratio – Measures short-term liquidity.

?? Formula: (Current Assets - Inventory) ÷ Current Liabilities

?? 43. Dividend Payout Ratio – Shows how much profit is paid to shareholders.

?? Formula: Dividends Paid ÷ Net Income

?? 44. Return on Investment (ROI) – Profitability of an investment.

?? Formula: (Net Profit ÷ Investment Cost) × 100

?? 45. Price-to-Earnings Ratio (P/E) – Investor valuation metric.

?? Formula: Market Price Per Share ÷ Earnings Per Share

Final Thought: Measure What Drives Success

?? Choose your top 3-4 KPIs, track them consistently, and refine your strategy accordingly. What KPIs do you focus on? Let’s discuss!

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