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Best CFO KPIs and Dashboards for the CFO

Best CFO KPIs and Dashboards for the CFO




The CFO is a critical member of the management team. The CFO’s role is to help ensure that the company has the resources it needs to operate effectively, handle liabilities and pay its debts. In addition, he or she helps strategize on where growth will come from in terms of new products and services or mergers/acquisitions.


What KPIs should be in a CFO’s dashboard?


The best ones are those that help you make better decisions about your business, such as revenue growth or profitability. You can also look at how well you’re doing when it comes to spending money on things like research & development (R&D) or marketing campaigns. And if any unexpected costs are coming up that could affect these numbers later on down the road, they should be included on this list.


  • What is a CFO KPI?


CFO KPIs are a set of performance metrics that help the CFO to measure their business and make decisions. They come in different forms, but all share one common goal: to help you understand how well your department is doing.


  • KPIs can be used for several purposes, including:


To show whether things are going according to plan or not


To evaluate past performances and compare them with other departments’ results


What KPIs Should include in a CFO’s Dashboard?


The CFO dashboard should include financial ratios and KPIs, as well as business metrics and analytics. The following are some examples:


  • Sales metrics (sales growth rate over time)


  • Marketing metrics (key performance indicators)


  • Customer metrics (customer retention rates, conversion rates, etc.)


  • Operational metrics (cost per sale or cost per unit).


  • KPIs and Metrics for the CFO’s Dashboard


Remember that KPIs are not a replacement for your strategy. They’re just one way to measure success in an organization and should be used alongside other metrics like sales, customer retention, etc., to see how well each piece of your business is performing.


You can use these KPIs as a guide if you want to get started on building your CFO dashboard but don’t know where to start or how much time it will take.


These are some examples:


  • Savings Rate


The savings rate is calculated by subtracting total operating expenses from gross revenue for the period under review (usually one month).

This number tells us how much money we make from our products/services relative to how much we spend on them during this time frame; if it’s negative then that means we’re spending more than we earn!


  • Net Profit Margin


Net profit margin tells us whether there’s enough money left over after paying all expenses so that shareholders could receive 100% returns on investment through dividends paid out each year.’


  • Quick Ratio


The Quick Ratio is a liquidity ratio that measures the ability of a company to pay its short-term liabilities with its short-term assets. The Quick Ratio is calculated by dividing the sum of cash and marketable securities, accounts receivable, and inventory by current liabilities.


The difficulty with this measure is that it includes inventory, which can be very illiquid in some businesses. This means that if you don’t have enough money on hand to pay off your bills in full every month when they come due—if you’re having trouble keeping up with unexpected expenses—then your operation may not be able to withstand even minor financial shocks or events (such as sudden increases in interest rates).


  • Current Ratio


The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations. It is calculated by dividing current assets by current liabilities.


A current ratio of 1 or higher is considered healthy, while a value below 1 indicates that the company may have difficulty paying obligations in the short term.

Analysts typically prefer quick and current ratios to the liquid because they exclude the long-term debt from their calculations; however, there are also some advantages to using liquidity metrics such as net profit margin (NP), operating income margin (OI M), revenue growth rate, and sales per employee


  • Working Capital


Working capital is a measure of the amount of cash a company has more than what it needs to operate. It’s calculated by subtracting current liabilities from current assets. Current assets are assets that are expected to be converted into cash within one year; for example, inventory and accounts receivable (money owed) could be considered part of current assets if they’re due within a year or less.


On the other hand, short-term debt such as bank loans or paying bills with checks would be considered short-term liabilities because they’re due within one year or less as well.


  • Operating Cash Flow


Operating cash flow is a good measure of the financial strength of your company because it reflects the amount of money available for working capital, debt repayment, and dividend payments. It also shows how much excess cash you have after covering all expenses, which gives investors an idea about whether or not they will receive dividends from the business in future years.


Operating cash flow is calculated as net income plus depreciation, depletion, amortization (D&A), other non-cash charges such as interest expense, taxes paid by companies with subsidiaries abroad, or foreign exchange gains/losses incurred during that period. The result should be adjusted for any changes in inventory levels over time (depreciation)


  • EBITDA & EBITDA Growth


EBITDA is the earnings before interest, taxes, depreciation, and amortization. It’s a good measure of a company’s profitability.


EBITDA growth measures how much an organization’s EBITDA has grown over a specified period (e.g., 12 months). If you’re interested in seeing how your organization’s cash flow stacks up against other organizations within your industry—or what kind of returns investors expect from various industries—this metric can help you do so!


  • Return on Equity (ROE)


Return on Equity (ROE) is a measure of how much return is generated on the money invested by shareholders. It is calculated by dividing net profit after tax by shareholders’ equity.


ROE can be used to determine how well a company is using its assets to generate profit. A KPI provides insight into the financial performance of a company, allowing you to determine if it’s meeting your goals as an executive leader or CFO. CFOs use KPIs to track how well they are doing in key areas of their job such as optimizing operating costs, reducing expenses, increasing sales volume, and creating value for shareholders through investments in growth opportunities such as new products or services


  • Total-Debt-to-Equity Ratio


The total debt to equity ratio is a measure of how much debt a company has compared to the value of its equity. The higher the number, the more financially stretched they are.

The ROE is directly proportional to the Total-Debt-to-Equity Ratio. The ROE shows how well a company uses its resources to generate profits for investors. A high ROE means that management used cash flow wisely and invested in growth opportunities that were profitable for shareholders, while a low ROE suggests that management did not invest enough money into operations or other areas where returns could be generated and therefore reduced shareholder value over time.


  • Accounts Payable Turnover


Accounts payable turnover is the number of times a company pays its suppliers in a given period. It can be calculated by dividing the annual cost of goods sold by average accounts payable. The cash Conversion Cycle (CCC) – measures the length of time for a business to convert operating cash into cash from operations. It can be calculated by subtracting average accounts receivable from average inventory and adding average accounts payable or calculating it as follows:




  • Cash Conversion Cycle (CCC)


The cash conversion cycle (CCC) is a measure of how efficiently a company is converting its cash into inventory and then back into cash again. It’s calculated as the average time it takes for the company to convert one dollar into goods or services and back out again, divided by its average sales per day.


If you have $100 in your pocket today, then tomorrow you’ll have $102 after spending that first dollar on something like the food at the grocery store. This might sound like very little money, but over time it adds up: if your CCC stays below two days per week—and especially if it goes down even further—you’re likely losing money because there’s less money circulating through your business each month than could be spent doing things like hiring new employees or paying taxes or buying supplies from vendors around town.


  • Gross Profit Margin


Gross profit margin is the ratio of gross profit to net sales. Gross profit is the difference between revenue and COGS (cost of goods sold), while net sales are equal to total revenue minus COGS.


Gross profit margin can be calculated by subtracting the COGS from the revenue, then dividing that number by the revenue. For example: if you have a company with $1 million in revenue and $450K in cost of goods sold for an annual gross margin of 25%, this means that 75% (25% – 15%) came from selling your product or service at a higher price than it cost you to make them. When calculating gross margins, it’s helpful to know where your company’s main product or service falls on this scale so you can compare different companies within similar industries


  • Earnings Per Share (EPS)


Earnings per share (EPS) is a financial metric that measures how much profit a company has earned for each share of common stock outstanding. It’s also known as earnings per share and it’s used to evaluate the performance of publicly traded companies, like those listed on the New York Stock Exchange or Nasdaq.


EPS can be calculated by taking net income and dividing it by the number of shares outstanding during that period. A CFO can use this KPI dashboard to see how well their organization is doing relative to its peers based on EPS growth over time – both organic (not due to acquisitions) and non-organic growth rates would be included within this metric’s calculations


  • Compound Average Growth Rate (CAGR)


CAGR is a measure of the average growth rate of a series of numbers over a given period. It’s calculated by taking the average growth rate for each year in the period and then finding the average of those growth rates.


The CAGR calculation can be applied to any set of data points—a profit and loss dashboard, for example—and will give you an idea about how much money you’ve been making over time. Here are some key data points that make up your CAGR dashboard:


  • Revenue


The total amount earned by your business during one year compared to what it was worth in the previous year (or at least as reported by GAAP standards). If this number goes up, then presumably so did sales volume or both!


  • Cost Of Goods Sold (COGS)


The cost is subtracted from revenue before we get our gross margin back on top; this includes both manufacturing expenses like wages & materials plus other costs such as freight charges on products sold overseas etcetera).


Gross Profit Margin % = Net Income + Taxes/(Sales * COGS)*/100


  • Employee Count


Employee count is a metric that should be a part of the hiring plan. The number of employees at your company will grow as you hire more employees, so it’s important to keep track of the size of your workforce.


Employee count and growth:


Employee count is an important indicator for measuring productivity, which means that if you want to know how much value you’re creating for customers and investors, then this number needs to be tracked closely by all involved parties—from the top management down through every employee on staff (and even lower).


This can help determine whether or not there’s room for growth within your organization; if so then it makes sense for CFOs who oversee budgets related specifically towards human capital expenses such as salaries/wages etc., but also benefit plans such as health insurance coverage benefits provided by employers.”


  • Interest Coverage Ratio


The interest coverage ratio measures the company’s ability to pay interest on its debt. It’s calculated by dividing interest expense by earnings before interest and taxes (EBIT). The result is an integer between 0 and 1, which indicates how much of a company’s earnings are available to service its obligations.


If there is positive net interest income (i.e., more than zero), then this means that at least some portion of the total amount borrowed has been covered by other positive cash flow sources such as dividends or sale proceeds from assets sold for cash; otherwise, it would be negative net interest income/losses.


If there is no loss in either direction:


Your bank balance will always be lower than expected because you have less money coming in than going out.


Your costs are higher than expected because they were taken out first before everything else happened…


  • Sample CFO Dashboards


Profit and Loss Dashboard


The main dashboard we have concentrates on profit and loss. Do not get confused with the name of this dashboard. This is not a simple dashboard. It has been created upon the idea that your institution is layered with a detailed dedicated structure, comprising thousands of data points across different business portions. This dashboard will automatically compile all your data and process it, enabling straightforward visualization.


Financial Ratios KPI Dashboard


Financial ratios are the livelihood of any CFO. These ratios are the sharp checks that give an understanding of the financial health of your company. This dashboard delivers a list of traditional financial ratios that require your awareness and presents them clearly and effectively.  Financial Ratios KPI dashboard is the definition of data-driven decision-making.


Master Financial Dashboard for CFOs & Finance Managers


If there is any monetary metric or KPI you want to examine, this dashboard has it. You can pull up any monetary data you need with a couple of clicks. Need monetary data for a meeting? No problem. Want to review the quarterly document before submitting it? Easy-peasy. The dashboard is an all-in-one treatment.




We hope this article has given you a better understanding of CFO KPIs and helped you create your dashboards to keep track of the numbers that matter most. Keep in mind that there are many more metrics you can measure with these KPIs, so don’t be afraid to dig into them if they seem relevant to your company’s financial success. Good luck!


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