Financial metrics & KPIs
Metrics & KPIs for modern finance teams
Gross Profit Margin
Current Ratio
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Financial Metrics & KPIs
Accounts Payable Turnover Ratio
Measures how often your company pays off its suppliers and short-term obligations within a given period, typically a month, quarter, or year.
Accounts Receivable Turnover Ratio
Measure how quickly your business turns credit sales into cash.
Current Accounts Receivable and Accounts Payable
Easily track your accounts receivable and payable for the month
Current Ratio
Measure the ability of your organization to pay all of your financial obligations within a year.
Debt-to-Equity Ratio
Measure how your organization is funding growth and how exposed it is if conditions change.
Gross Profit Margin
Measures the percentage of revenue remaining after subtracting the cost of goods sold, before operating expenses.
Income and Expenses (Last 12 Months)
Track your income, expenses and profit over the past 12 months
Inventory Turnover Ratio
Measures how many times a business sells through its entire inventory in a given period.
Net Profit Margin
Measures how much profit your business generates for every dollar of revenue earned.
Profit and Loss Report
Track your income, cost of sales, and operating expenses to calculate net profit
Quick Ratio
Measure your organization's ability to meet short-term financial obligations using assets that convert quickly to cash.
Recent Payments
Always know where your money is coming from by tracking your recent payment history
Return on Equity
Measure how efficiently your company generates profit from shareholders' equity, and understand what drives the number up or down.
Vendor Expenses
Track outstanding supplier payments and manage cash flow with the Vendor Expenses KPI.
Working Capital
Measure your organization's short-term financial health by comparing current assets to current liabilities.
Account Balance
Account Balance is the total amount of money held in a financial account at a specific point in time, reflecting all credits and debits posted to that account.
Annual Contract Value
Annual Contract Value (ACV) is the average yearly revenue generated by a single customer contract, excluding one-time fees. Learn how to calculate it and use it to grow predictable revenue.
Average Revenue Per Unit (ARPU)
Average Revenue Per Unit (ARPU) measures the average revenue a business generates from a single customer or user over a given period. It tells you whether your revenue per customer is growing, shrinking, or holding steady.
ARR Multiple
The ARR Multiple compares a SaaS company's market valuation to its Annual Recurring Revenue (ARR), giving investors a fast, consistent way to size up a company's worth.
Average Sale Price (ASP)
Average Sale Price (ASP) is the average revenue earned per unit sold over a defined period. It's one of the clearest signals you have for pricing decisions, revenue forecasting, and competitive positioning.
Cash and Cash Equivalents
Cash and cash equivalents are a company's most liquid short-term assets: money on hand and investments that convert to cash within 90 days. Learn what qualifies, how to calculate the balance, and why it matters for financial decision-making.
Cash Conversion Cycle (CCC)
The Cash Conversion Cycle (CCC) measures how long it takes your business to turn inventory into cash, revealing how well you manage working capital.
Cost Of Goods Sold (COGS) Vs. Operating Expenses
Cost of Goods Sold (COGS) and Operating Expenses (OPEX) both reduce your profit, but they measure different things. Knowing the difference keeps your pricing accurate, your margins meaningful, and your cost-cutting aimed at the right line.
Conversion Value
Conversion Value is the market worth of a convertible security if exchanged for common stock today. Use it to decide whether to convert or hold.
Cost of Goods Sold (COGS)
COGS measures all direct costs a business incurs to produce or acquire the goods it sells, giving you control over margins, inventory, and pricing.
Disputed Charge
Disputed Charges represent the total of payments contested by customers, which may result in chargebacks, fees, and direct revenue loss. Tracking this KPI helps you protect margins and merchant standing.
EBITDA
EBITDA measures a company's core operating profitability by removing interest, taxes, depreciation, and amortization. It's one of the most widely used metrics for financial comparisons, valuations, and acquisition decisions.
EBITDA Margin
EBITDA Margin shows what percentage of revenue a company keeps as operating earnings before interest, taxes, depreciation, and amortization.
EBITDA vs. Net Income
EBITDA and Net Income both measure profitability, but they answer different questions. Knowing which one to use, and when, changes the conclusions you draw about a company's financial health.
EBITDA vs. Revenue
Revenue tells you how much came in. EBITDA tells you how much you kept from operations. Understanding the difference helps you make better decisions, faster, and with more confidence.
Enterprise Value
Enterprise Value is a measure of the total value of a company. It captures equity, debt, and cash in a single number, giving leaders and investors a clearer picture than market capitalization alone.
Enterprise Multiple (EV/EBITDA)
EV/EBITDA measures a company's total value relative to its operating earnings, helping investors, analysts, and business leaders make confident decisions about valuation.
EV/EBITDA vs. P/E Multiple
Two of the most widely used valuation ratios in investing, compared side by side so you know when to use each one.
Enterprise-Value-to-Revenue Multiple (EV/R)
EV/R compares a company's enterprise value to its revenue, giving investors and analysts a reliable valuation baseline even when profitability metrics fall short.
Gross Burn Vs. Net Burn
Gross Burn Rate and Net Burn Rate measure how fast your company spends cash. Knowing the difference tells you how long your runway will last.
Gross Churn vs. Net Churn
Gross Churn and Net Churn both measure revenue loss, but they tell very different stories. Learn what each metric measures, how to calculate them, and how to use both to make smarter retention and growth decisions.
Gross Margin
Gross Margin is the percentage of revenue remaining after subtracting the cost of goods sold (COGS). It shows how efficiently a company turns sales into profit.
Gross Profit
Gross Profit is the difference between your total revenue and the cost of goods sold (COGS). It shows how efficiently your business turns production activity into income, before overhead, taxes, or interest enter the picture.
Gross Margin vs. Gross Profit
Gross Margin and Gross Profit are two financial metrics that reveal how much money a company keeps after covering the direct cost of what it sells. Knowing the difference tells you whether a number is a dollar amount or a percentage, and why that distinction matters for the decisions you make.
Gross Profit vs. Net Income
Gross Profit and Net Income both measure profitability, but at different stages. Learn what each metric includes, how to calculate them, and when to use each one.
Gross Retention vs. Net Retention
Gross Revenue Retention and Net Revenue Retention measure similar things but tell very different stories. Here is how to read each one, and when to trust which number.
Gross Revenue Retention
Gross Revenue Retention is not relevant to every industry, but you need to understand the finer points to know whether it could help your bottom line.
Net Retention vs. Gross Retention
Net Revenue Retention and Gross Revenue Retention measure different things. Here is what each one tells you, why both matter, and how to use them together to make better revenue decisions.
Invoice
Invoices anchor your cash flow, your financial records, and your ability to spot problems before they compound. Learn what invoices contain, the types that exist, and how to keep them organized.
Net Debt
Net Debt shows how much a company owes beyond what it holds in cash, and whether it could cover its obligations today.
Net Income
Net Income is the profit remaining after all expenses, taxes, and deductions are subtracted from total revenue. It is the clearest single number for understanding whether a business is making money or losing it.
Net Profit
Net Profit is the total revenue your business keeps after every expense has been paid. It is the clearest single number that tells you whether your business is actually making money.
Net Sales
Net Sales is the revenue your business keeps after subtracting returns, allowances, and discounts from total sales. It shows what you actually earned, not just what came in.
Non-Operating Expenses
Non-Operating Expenses are costs a business incurs that fall outside its core, day-to-day operations, such as interest payments, asset losses, and restructuring charges.
Net Operating Profit After Tax (NOPAT)
NOPAT shows how profitable a company's core operations are, after taxes, with debt-related tax advantages removed so you can compare businesses on equal footing.
Net Revenue Retention
Net Revenue Retention (NRR) measures the percentage of recurring revenue retained from existing customers over a set period, after accounting for expansion, downgrades, and churn.
Operating Expenses (OPEX)
Operating expenses, or OPEX, are the costs a business incurs to keep daily operations running: rent, salaries, utilities, office supplies, maintenance, and more. Knowing what they are, and keeping them in check, is one of the clearest levers you have on profitability.
Payroll Expenses
Payroll expenses are the total costs a business incurs to compensate its workforce, including gross wages, employer taxes, and benefits contributions.
Payroll to Revenue Ratio
A financial metric that expresses total payroll expenses as a percentage of revenue, helping leaders assess whether labour costs are aligned with business output.
Price-to-Earnings Ratio
The Price-to-Earnings ratio measures how much investors pay for each dollar of a company's earnings — a key tool for comparing stock valuations.
Current Ratio vs Quick Ratio
The Current Ratio and Quick Ratio both measure short-term liquidity, but the Quick Ratio excludes inventory for a more conservative view of a company's ability to pay its debts.
Revenue
Revenue represents the total earnings of a business from selling its products or services within a specified timeframe, typically a month or a year, excluding returns or refunds.
Revenue Per Employee
Revenue Per Employee measures how much revenue your business generates for every person on your payroll. It's a fast, honest signal on whether your team size matches your output.
Revenue vs. Income
Revenue is the total money a company earns from sales. Income is what remains after subtracting expenses and taxes. Knowing the difference helps you read financial statements accurately and make confident decisions about pricing, spending, and growth.
Revenue vs. Profit
Revenue and Profit represent the top and bottom lines of a company's income statement.
Return on Invested Capital (ROIC)
Return on Invested Capital (ROIC) measures how efficiently a business generates profit from the capital its investors have committed. It tells you whether the money put into the business is actually working.
Net Present Value (NPV)
Understand what Net Present Value means, how to calculate it, and how to use it to make better investment decisions.
Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) measures how much revenue each user generates on average. Learn the formula, why it matters, and how to improve it.
Return on Incremental Invested Capital (ROIIC)
Return on Incremental Invested Capital (ROIIC) measures how efficiently a company generates profit from new capital it deploys. Use it to decide whether the next dollar of investment is worth spending.
Payment Acceptance
Payment Acceptance measures how reliably your business receives payment across every method and channel it supports, and why getting it right matters for revenue, trust, and growth.
What are financial metrics?
Financial metrics are quantitative measures used to evaluate the performance, health, and stability of a business. Derived from financial statements like the balance sheet, income statement, and cash flow statement, they give leaders a clear picture of where the business stands.
Common examples include Revenue, Net Income, Earnings Per Share, Return on Investment, Return on Equity, and Debt-to-Equity Ratio. Together, these metrics tell you whether the business is profitable, efficient, and built to last.
Know where your business stands financially
Whether you run a growing professional services firm or a scaling SaaS company, financial performance comes down to two things: generating revenue and managing where the money goes. Investors, stakeholders, and leadership all look to financial data to judge whether the business is viable and on track.
The problem is that most teams are still piecing this picture together manually, pulling numbers from different systems, pasting them into spreadsheets, or explaining their business to an AI tool from scratch every time they need an answer. That process is slow, error-prone, and leaves decision-makers one step behind.
Use these financial KPIs and ratios to build dashboards that keep the full picture in one place, automatically updated, and ready when you need it.
What are the top 3 financial metrics in any company?
Three financial metrics matter in every company: Revenue, Net Profit, and Net Burn.
Revenue is the income generated through your business's primary operations, often called the "top line." Net Profit is what remains after all expenses are subtracted from total income, the "bottom line." Net Burn is the amount of cash a company loses each month as it draws down reserves. These three numbers, tracked consistently, tell you whether the business is growing, sustainable, or at risk.
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The following KPIs give finance and accounting teams a reliable, consistent view of fiscal health. Each one connects a number to a decision, so you always know what the data is telling you to do next.
Current Ratio: Shows whether the business can cover short-term obligations. A ratio below 1 is a warning sign worth acting on.
Gross Margin: Reveals how efficiently the business converts revenue into profit before overhead. Declining Gross Margin often signals pricing or cost problems early.
Net Burn: Tracks how fast the company is spending down cash reserves each month. Critical for any business that isn't yet cash-flow positive.
Net Profit: The clearest measure of overall profitability. If this number is moving in the wrong direction, everything else needs a second look.
Revenue: The starting point for every financial conversation. Track it by period, by product, and by channel to understand what's actually driving growth.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): Strips out financing and accounting variables to show operational performance. Useful for comparing performance across periods or against industry benchmarks.
Annual Recurring Revenue: For subscription businesses, this is the revenue number that actually predicts future performance, not just what came in last month.
CAC Payback Period: Tells you how long it takes to recover what you spent to acquire a customer. A long payback period is a cash flow problem hiding in plain sight.
Customer Lifetime Value: Puts a number on what each customer relationship is worth over time. Tracked alongside CAC Payback Period, it tells you whether growth is sustainable.
Revenue Per Employee: A simple efficiency check. If Revenue Per Employee is flat while headcount grows, productivity isn't keeping pace.
MRR Growth Rate: For recurring-revenue businesses, this is the pulse check. Consistent MRR Growth Rate means the business is compounding; inconsistency means something needs attention.
Tracking these metrics in a shared, always-on dashboard means your team stops waiting for someone to pull a number and starts making decisions with confidence. Explore KPI examples and templates to see how other finance teams are putting these metrics to work.