KPIs for CFOs and Finance Teams
These are the KPIs a CFO or finance team tracks for profitability, liquidity and cash conversion. They are mostly standard accounting measures, so definitions matter more than formulas.
The KPIs to track
Gross profit margin is the percentage of revenue left after paying the direct costs of producing what you sold.
Formula and SQL query on the Gross Profit Margin page.
Operating margin is the share of revenue left after operating costs, before interest and tax.
Formula and SQL query on the Operating Margin page.
EBITDA margin is earnings before interest, tax, depreciation and amortisation as a percentage of revenue.
Formula and SQL query on the EBITDA Margin page.
Free cash flow is the cash a business generates from operations after paying for the capital spending it needs to keep running.
Formula and SQL query on the Free Cash Flow page.
The current ratio compares current assets with current liabilities to show whether a business can pay its short-term obligations.
Formula and SQL query on the Current Ratio page.
Days sales outstanding is the average number of days it takes to collect payment after a sale.
Formula and SQL query on the Days Sales Outstanding (DSO) page.
The cash conversion cycle is the number of days it takes to turn money spent on inventory back into cash from sales.
Formula and SQL query on the Cash Conversion Cycle page.
Budget variance is the difference between what you planned to spend or earn and what actually happened.
Formula and SQL query on the Budget Variance page.
Where the data usually lives
The general ledger, accounts receivable and payable, bank feeds, budgets and the billing system.
Measurement mistakes to avoid
- Accruals and timing differences make monthly figures jumpy; reconcile to the ledger before presenting.
- Allocations of shared costs change margins by product; document the method.
- One-off items should be shown separately, not hidden in an operating margin.
Questions to ask your data
You can type these as plain questions. SchemaChat turns each one into SQL against your connected database or uploaded file, runs it, and shows the SQL and the figures it used so you can check the answer before you share it. Check that the result matches how your business defines each KPI.
- What is gross margin by product line this quarter?
- Which budget lines are most over or under plan?
- How long do customers take to pay and how has that changed?
- What is our current ratio and working capital at each month end?