This scorecard can help CFOs identify and keep track of the metrics that matter most to his or her job, the finance department and the organization.
The metrics you use should depend on…
- Business Model
- Business Objective
- Data Availability
- Time & Resources
Metric Categories
- Profitability/Performance
- Cash Flow & Liquidity
- Departmental Performance
- Asset Utilization
- Capitalization/Solvency
- Return on Investment
- Market Performance (if publicly traded)
Top Six Business Metrics
- Operating Cash Flow
- Current Accounts Receivable
- Working Capital
- Gross Profit Margin
- Current Accounts Payable
- Net Profit Margin
12 Finance Metrics That Every CFO Should Track
- Gross Profit Margin
- Net Profit Margin
- Return on Assets (ROA)
- Operating Cash Flow Ration (OCF)
- Current Ratio
- Working Capital Ration
- Quick Ratio
- Gross Burn Rate
- AR/AP Turnover
- Days Sales Outstanding (DSO)
- Berry Ratio (Rare)
- Cash Generating Power Ratio
Accounting/Finance Department Metrics
- Days to Close
- Head Count Ratio
- Transactions Processed Per Person
- Reporting Error Rate
- Time Allocation
Signs You Need Better Analytics
- Standard Reports are not Flexible
- Creating Custom Reports is Difficult
- Operating Data is not Available
- Limited KPIs that don’t fit the Business
- Rigid Dashboards that are hard to Customize