KPIs
Cost Of Sales
The direct costs to produce goods or services sold during a specific period. These costs are related to creating, manufacturing, and delivering products or services.
Gross Profit Margin%
The percentage of revenue after deducting cost of sales or cost of goods sold. This KPI indicates efficiency in producing or delivering products and services.
Operating Margin
The profit from core operations after operating expenses and before interest and taxes.
Return on Capital Employed (ROCE)
The ratio measures profitability and efficiency by evaluating how effectively a company uses capital to generate profit.
Operating Expenses%
The day-to-day costs required to run regular business operations, excluding cost of goods sold are included.
Cash Flow Margin%
The percentage of cash generated from operating activities compared to total revenue. This KPI indicates efficiency in converting sales into cash.
The cash generated from operational cost can be calculated using this formula Cash Flow Margin = Operating Cash Flow / Revenue
Cash Conversion Cycle
The number of days required to convert inventory and operating resources into cash from sales.
The number of days can be calculated using these formulas
- CCC=DIO+DSO−DPO
- Days Inventory Outstanding: Average Inventory / Cost of Sales * 365
- Days Sales Outstanding: Average AR / Revenue * 365
- Days Outstanding Payable: Average AP / Cost of Sales *365
Cash Flow
The movement of money into and out of a business during a specific period. The measure indicates available cash for operations, expenses, investment, and savings.
The available cash can be calculated using this formula Total Cash Received from customer – Total Cash paid to vendors = Net Cash Balance
Debt To Equity
The proportion of debt relative to equity shareholders which is used to finance operations.
Days Sales Outstanding
The number of days required to collect payment from customers after a sale is completed.
Days Inventory Outstanding
The number of days required to sell the inventory.
Days Payable Outstanding
The number of days required to pay suppliers after receiving invoices.