KPI library
Financial KPIs: formulas and examples
Financial KPIs show how profitable, liquid and solvent an organisation is. The data usually comes from your accounting package or ERP: general ledger entries, invoices and open items.
23 finance KPIs
- Gross marginThe share of revenue left after deducting the cost of goods sold.Formula and example
- Net profit marginThe percentage of revenue left as profit after all costs, interest and tax.Formula and example
- EBITDAEarnings before interest, taxes, depreciation and amortisation, in euros.Formula and example
- EBITDA marginEBITDA as a percentage of revenue, comparable across periods and business units.Formula and example
- Operating margin (EBIT margin)Operating profit before interest and tax as a percentage of revenue.Formula and example
- Revenue growthThe percentage change in revenue compared with an earlier period.Formula and example
- Days sales outstanding (DSO)The average number of days customers take to pay their invoices.Formula and example
- Days payable outstanding (DPO)The average number of days you take to pay your suppliers.Formula and example
- Cash conversion cycle (CCC)The number of days between paying suppliers and collecting cash from customers.Formula and example
- Current ratioCurrent assets divided by current liabilities: can you pay your short-term debts?Formula and example
- Quick ratio (acid test)Current assets excluding stock, divided by current liabilities.Formula and example
- Working capitalCurrent assets minus current liabilities: the cash tied up in day-to-day operations.Formula and example
- Solvency ratio (equity ratio)The share of total assets financed by equity.Formula and example
- Debt-to-equity ratioTotal liabilities divided by equity: how heavily the business relies on debt.Formula and example
- Return on equity (ROE)Net profit as a percentage of average shareholders' equity.Formula and example
- Return on assets (ROA)Net profit as a percentage of average total assets: how profitable are the assets?Formula and example
- Budget varianceThe difference between actual and budgeted revenue or costs, in euros and percent.Formula and example
- Operating expense ratio (OPEX ratio)Operating expenses, excluding cost of goods sold, as a percentage of revenue.Formula and example
- Staff costs as a % of revenueThe share of revenue spent on salaries, employer contributions and pensions.Formula and example
- Overdue receivablesThe share of outstanding receivables that is past its due date.Formula and example
- Free cash flow (FCF)Operating cash flow minus capital expenditure: the cash that is really left over.Formula and example
- Break-even pointThe revenue at which income exactly covers all costs: no profit, no loss.Formula and example
- Revenue per employee (per FTE)Revenue divided by average full-time equivalents: a measure of labour productivity.Formula and example
Further reading
- ResourcesKPI library: 193 KPIs with formulas and examples193 KPIs explained for finance, sales, marketing, e-commerce, inventory, logistics, HR, projects, service and SaaS, with formulas, examples, SQL and DAX.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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