Finance is the foundation of every company. But how do you, as a CFO or controller, keep a grip on the reality behind the numbers? With the right financial KPIs, you can make performance visible, identify risks and make timely adjustments. In this article, we show you which KPIs you really need: from margins and cash flow to cost structure and forecasting. Includes tips for dashboards that bring your numbers to life.
Profitability and margin KPIs
A healthy company is profitable — but profit is more than the last line of your P&L. The right KPIs provide insight into which products, customers or departments really contribute to your results.
1. Net profit margin
What? The percentage of your turnover that remains after all costs.
Formula: net profit ÷ turnover × 100
Why? Important for the final balance sheet and external investors.
2. Gross margin
What? Difference between turnover and direct costs (such as raw materials or purchasing).
Formula: (turnover — cost of goods sold) ÷ turnover × 100
Why? Shows the profitability of your core business, before overhead.
3. EBITDA margin
What? Result before deduction of interest, taxes, depreciation and amortization.
Use: Operational Profitability Benchmark.
Hint: Compare this KPI by business unit or branch.
4. Profitability per customer/product
What? How much margin does each customer or product group provide?
Why? Helps identify and adjust loss-making customers or products.
Cash flow and liquidity KPIs
Cash is king. Even profitable companies can run into trouble due to a lack of cash. These KPIs keep a close eye on your cash position.
5. Operational cash flow
What? Cash generated by operational activities
Formula: receipts — payments
Why? Shows whether your company is creating enough cash from its core activities.
6. Current ratio
What? Ratio between current assets and current liabilities
Formula: current assets ÷ current liabilities
Standard: >1 = healthy. <1 = risk of liquidity problems.
7. Quick ratio (acid test)
What? Stricter liquidity measure: without stocks
Formula: (current assets — inventory) ÷ current liabilities
Use: Especially important in production and retail.
8. Cash conversion cycle
What? Number of days that your cash is stuck in inventory and debtors
Formula: DSO + DIO — DPO
Action: Shorten your cycle through better inventory rotation or faster billing.
Cost Management KPIs
Profitability is not only a matter of turnover, but also of cost control. With these KPIs, you get a grip on your spending pattern.
9. Unit cost
What? Total cost to deliver one product or service
Use: Pricing and margin control basis
10. Cost structure by category
What? Distribution of your total costs across categories (staff, marketing, transport...)
Action: Identify rising costs and wastes
11. Variable vs. fixed cost ratio
What? What% of your costs are scalable?
Why? Important for the scalability of your business model
12. Opex/Capex ratio
What? Ratio between operational and investment costs
Use: Interesting for growth companies or sectors with a lot of R&D
KPIs for forecasting and budget monitoring
A budget is worthless without follow-up. These KPIs help you check whether you are on track or need to revise in time.
13. Budget vs. realization
What? How do the actual figures relate to the budget?
Formula: (realization — budget) ÷ budget × 100
Use: By department or cost center
1.4 Forecast accuracy
What? How well does your team predict monthly/quarterly results?
Use: Measure the reliability of your planning process
15. Variance analysis
What? Explanation of differences between budget and realization
Action: Combine with storytelling to explain the numbers for non-financial stakeholders
16. Rolling forecast metrics
What? Continuous recalculation of financial year expectations
Advantage: More agility than static annual budgets
Examples of financial dashboards
Visualize your KPIs in powerful dashboards. No overload of numbers, but clear insights for action and strategy.
What a good financial dashboard includes:
- KPIs per month, quarter and year
- Comparison with budget and last year
- Anomaly warnings
- Filters by department, product group, or region
Interesting visualizations:
- Waterfall diagram (turnover → costs → result)
- Bullet charts (goal vs. realization)
- KPI cards with quick insight (margins, cash, DSO...)
-
Common mistakes with financial KPIs
- Too much focus on historical figures
- KPIs without context or purpose
- No link to operational data
- No visual or action-oriented follow-up
Choose KPIs that link to your strategic goals
Work with goals, time frames, and action owners
Share dashboards with relevant teams, not just finance
Summary: What do you need to measure?
Each finance department must have a minimum of insight into:
- Margins (gross, net, EBITDA)
- Cash flow and liquidity ratios
- Cost efficiency by product group
- Forecast vs. realization of deviations
Ready to take your financial reporting to the next level?
Read more:
E-commerce companies need financial KPIs such as return costs, conversion value and customer value.
Transport companies keep a close eye on profitability per trip and cost per kilometer.
Marketing investments require ROI control, see here which KPIs make your return visible.