10 Cash KPIs You Should Know

10 Cash KPIs You Should Know

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1️⃣ 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 𝗳𝗿𝗼𝗺 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 (𝗖𝗙𝗢)
→ Net cash from operations.
→ Formula: Profit before Tax – Tax Paid + Non-cash Expenses – Changes in Working Capital

2️⃣ 𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗥𝗮𝘁𝗶𝗼
→ Current assets vs. current liabilities.
→ Formula: Current Assets / Current Liabilities

3️⃣ 𝗤𝘂𝗶𝗰𝗸 𝗥𝗮𝘁𝗶𝗼 (𝗔𝗰𝗶𝗱-𝗧𝗲𝘀𝘁 𝗥𝗮𝘁𝗶𝗼)
→ Current ratio excluding inventory.
→ Formula: (Current Assets – Inventory) / Current Liabilities

4️⃣ 𝗗𝗮𝘆𝘀 𝗜𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗢𝘂𝘁𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 (𝗗𝗜𝗢)
→ Days to sell inventory.
→ Formula: (Average Inventory / COGS) x Days

5️⃣ 𝗗𝗮𝘆𝘀 𝗦𝗮𝗹𝗲𝘀 𝗢𝘂𝘁𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 (𝗗𝗦𝗢)
→ Days to collect receivables.
→ Formula: (Accounts Receivable / Credit Sales) x Days

6️⃣ 𝗗𝗮𝘆𝘀 𝗣𝗮𝘆𝗮𝗯𝗹𝗲 𝗢𝘂𝘁𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 (𝗗𝗣𝗢)
→ Days to pay suppliers.
→ Formula: (Accounts Payable / Purchases) x Days

7️⃣ 𝗖𝗮𝘀𝗵 𝗖𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻 𝗖𝘆𝗰𝗹𝗲 (𝗖𝗖𝗖)
→ Time to convert inventory to cash.
→ Formula: DIO + DSO – DPO

8️⃣ 𝗖𝗮𝘀𝗵 𝗕𝘂𝗿𝗻 𝗥𝗮𝘁𝗲
→ Cash Burn Rate.
→ Formula: (Beginning Cash – Ending Cash) / Months

9️⃣ 𝗖𝗮𝘀𝗵 𝗥𝘂𝗻𝘄𝗮𝘆
→ Months until cash runs out.
→ Formula: Cash Balance / Burn Rate

🔟 𝗙𝗿𝗲𝗲 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 (𝗙𝗖𝗙)
→ Cash available after expenses and investments.
→ Formula: CFO – Capital Expenditures