Wednesday, September 2, 2020

Financial Statement KPIs

Financial statements are formal records that reflect a company's financial activities and performances in a financial period. The information is presented in a manner that is easy to understand. Typically, the following statements are included:

  • Balance Sheet

  • Cash Flow Statement 

  • Profit and Loss Statement

A company needs to prepare and show its financial statements to reveal its financial activities and performances. The public and stakeholders thus can make their financial decisions based on the financial statements. The Predefined list of Financial statement KPIs are: - 

  • Accounts Payable 

  • Accounts Receivable

  • Cash 

  • COGS 

  • Gross Profit

  • Inventory

  • Net Cash Flow

  • Net Cash Flow (Financial) 

  • Net Cash Flow (Investment) 

  • Net Cash Flow (Operating)

  • Net Profit 

  • Total Assets 

  • Total Current Assets

  • Total Current Liabilities

  • Total Equity

  • Total Liabilities 

For Example, the Net Cash Flow (Operating) KPI shows the total amount of money generated by a company’s daily business operations. The financial metric hints whether a company can maintain a positive cash flow needed for growth or requires external financing to cope with all the expenses. 


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