FINANCE CHEAT SHEET by

Nicolas
Boucher

ACCOUNTING KPIS FINANCE ORGANIZATION CHART FP&A METHODS AND SKILLS CHART HEADCOUNT KPIS
ACCOUNTS RECEIVABLE TURNOVER HEADCOUNT
Net Credit Sales / Average Accounts Number of active employees full time &
Receivable part time + leasing employees
ACCOUNTS PAYABLE TURNOVER FULL TIME EQUIVALENT (FTE)
Total Supplier Purchases / Average Number of hours in the employee
Accounts Payable contract / Standard working hours
WORKING CAPITAL RATIO TURNOVER RATE
Current Assets / Current Liabilities Number of departure over a period /
DEBT-TO-EQUITY RATIO Average total headcount
Total Debt / Total Equity NATURAL ATTRITION
GROSS PROFIT MARGIN Planned retirement + Planned end of
limited contract
(Revenue - Cost of Goods Sold) / Revenue
NET PROFIT MARGIN CAPACITY
Net Income / Revenue Number of FTEs over a period x working
hours available for one FTE
RETURN ON ASSETS (ROA)
CAPACITY INCREASE FLEXIBILITY
Net Income / Total Assets
Flexible time account not used + Overtime
RETURN ON EQUITY (ROE)
+ Temporary change of hours available in
Net Income / Total Equity part-time contracts
INVENTORY TURNOVER CAPACITY DECREASE FLEXIBILITY
Cost of Goods Sold / Average Inventory Flexible time account + Temporary
FIXED ASSET TURNOVER change of hours available in part-time
Revenue / Net Fixed Assets contracts + Temporary workers time
NORIA EFFECT

CASH KPIS FINANCIAL TERMS EXPLAINED TO NON-FINANCE PEOPLE (New hires salary costs - Leavers salary
costs) / Previous salary costs
ABSENTEEISM
Illness days / Total working days

CASH BURN RATE REVENUE PROFIT ASSETS BALANCE SHEET CASH FLOW
TIME TO FILL
Average number of days between job
STATEMENT
Cash Spent (monthly average) - Cash
The total amount The money you have left Things you own It shows how mucha opening & contract signed by candidate
Received (monthly average)
of money coming over after you subtract that have value company has, how much it
AVERAGE DAYS DELINQUENT (ADD)
into your business your expenses from owes and how much is left Shows where the

MANUFACTURING KPIS
Days Sales Outstanding (DSO) - Best company's cash
your income for the owner of the
Possible Days Sales Outstanding (BPDSO) came from and
OPERATING CASH FLOW (OCF) company
where it went

EXPENSES LOSS
Net Income + Non-Cash Expenses –
Increase in Working Capital LIABILITIES INCOME STATEMENT PRODUCTION ACTIVITY
FREE CASH FLOW (FCF) Money you spend When your Money you owe Sum of monetary value of all finished
It shows how much money
OCF + Interest Payments - Asset Purchase on things you need expenses are more goods produced within a defined period
to others the company made and
OVERDUES RATIO to run your business than your income how much it spent CYCLE TIME
Overdues / Total Receivables Process time + Inspection time + Move
DAYS OF INVENTORY OUTSTANDING time + Queue time
TAKT TIME
Average Inventory / Yearly Cost Of Goods

HOW TO REDUCE COSTS ? CASH CONVERSION CYCLE

Solds (COGS) x 365 days Production available time / Customer
DAYS SALES OUTSTANDING (DSO) demand

Average Account Receivables / Annual

INVENTORY TURNOVER
Sales x 365 days Cost of Goods Sold / Average Inventory
DAYS PAYABLES OUTSTANDING (DPO) (over period of time)
Payment from

-10%
Average Account Payables / Yearly Cost Of Reception of Payment to Goods RETURN ON ASSETS (ROA)
client
INCREMENTAL IDEAS
Goods Solds (COGS) x 365 days Inventory supplier sold Net Income / Average Total Assets
CASH CONVERSION CYCLE (CCC) FIRST PAST YIELD
DIO+DSO−DPO Number of good products finished /
CASH RESERVES IN DAYS Number of production orders started
Gain control of Reduce Reduce expenses (expressed in percentage)
Cash Reserves / Average Daily Expenses "miscellaneous" consulting specific to each Days Inventory (DIO) YIELD FACTOR
spending services department
Number of production orders started /

-20%
Days Payable (DPO) Number of good products finished

BALANCE SHEET KPIS REDESIGN IDEAS OVERALL EQUIPMENT

EFFECTIVENESS
Days Sales Receivable (DSO) Good Count × Ideal Cycle Time / Planned
CURRENT RATIO Production Time
Reduced Automate Eliminate liaisons
Current Assets / Current Liabilities business processes and coordinators Cash Conversion Cycle (CCC) ON TIME DELIVERY
requirements On time units / Total units
QUICK RATIO
AVOIDED COSTS

-30%
(Current Assets - Inventory) / Current

=
Assumed Repair Cost + Production Losses

REVAMP IDEAS
Liabilities

HOURLY COSTS
Direct Labor Costs & Costs – Preventative Maintenance Cost
DEBT-TO-EQUITY RATIO
allocated to hourly rate
Total Liabilities / Shareholders' Equity
DEBT RATIO
Total Liabilities / Total Assets Restructure or cut Eliminate Shift the burden
RATE HOURS
Available hours, less holidays, less
sickness, less non-productive hours INVENTORY KPIS
cross-department programs to the most
INTEREST COVERAGE RATIO
activities efficient location AVERAGE INVENTORY
Earnings Before Interest and Taxes (EBIT) /
Interest Expenses Average inventory = (Beginning inventory +
RETURN ON ASSETS (ROA) Ending inventory) / 2

BUDGET PROCESS PVM ANALYSIS VALUATION TECHNIQUES

Net Income / Total Assets DAYS ON HAND
RETURN ON EQUITY (ROE) Days of inventory on hand = (Average inventory
for period / Cost of sales for period) x 365
Net Income / Shareholders' Equity
STOCK TO SALES RATIO
INVENTORY TURNOVER
Stock to sales ratio = Inventory value /
Price Volume Mix
Cost of Goods Sold / Average Inventory
ACCOUNTS RECEIVABLE TURNOVER
Comparable Analysis Sales value

Comparable Company Ratio x COST OF CARRY

Revenue / Average Accounts Receivable
Even keeping Company Financial Ratio (Inventory Service Costs + Inventory Risk Costs +
WORKING CAPITAL
total Capital Cost + Storage Cost) / Total Inventory Value
Selling more
Current Assets - Current Liabilities Effect of
price
products, even
quantities and
prices the DCF Discounted Cash Flow BACKORDER RATE
at the same same, sales
keeping mix and price Σ(Cash Flows / (1+r)^t) Backorder rate = (Number of Undeliverable Orders
quantity can increase

SAAS KPIS
will increase of we sell a / Total Number of Orders)
constans sales higher
proportion of Asset-Based Valuation SELL-THROUGH RATE
expensive Number of units sold / Number of units
products Market Value of Assets - Liabilities
received
CUSTOMER CHURN RATE
Customers lost / Total Customers
Liquidation Valuation SCRAP RATE
Scrap expenses over the period / Average
NEW BUYER GROWTH RATE Assets - Liabilities
inventory over the period
(New buyers this month - New buyers last
month) / New buyers last month Precedent Transactions TIME TO RECEIVE
Time for stock validation + Time to add stock to
LIFETIME VALUE Transaction Price x Transaction records + Time to prep stock for storage
Customer Value * Average Customer Multiples
INVENTORY SHRINKAGE
Lifespan
Ending inventory value – Physically
CUSTOMER ACQUISITION COSTS
counted inventory value

CAPEX KPIS CEO KPIS

Cost of Sales and Marketing / Number of
New Customers Acquired DEAD STOCK
NET BURN RATE Amount of unsellable stock in period /
Amount of available stock in period
Cash Spent - Cash received
ACQUISITION PAYBACK PERIOD REVENUE GROWTH CUSTOMER ACQUISITION COST (CAC)
RUNWAY

Current Cash Balance / Burn Rate
AVERAGE REVENUE PER USER (ARPU)
Purchase Cost + Direct Costs
COMMITMENTS
Future Purchase Contracts
CREDITS TO
Total Investment / Annual Cash Flow (Current period revenue - Previous period Total Marketing and Sales Costs / Number of New
Customers Acquired
INTERNAL RATE OF RETURN (IRR) revenue) / Previous period revenue
GROSS PROFIT MARGIN CUSTOMER LIFETIME VALUE (CLV)
(Future Value / Present Value) ^ [(1 /

Nicolas
Total revenue / Total number of customers (Revenue - Cost of Goods Sold) / Revenue
(Average Annual Revenue per Customer x Average
Number of Periods) – 1] Customer Lifespan) - Customer Acquisition Cost
SAAS QUICK RATIO ASSET TURNOVER NET PROFIT MARGIN
NET PRESENT VALUE (NPV) EMPLOYEE ENGAGEMENT
(New MRRt + Expansion MRRt) / (Churned Revenue / Fixed Assets

Boucher
(Net Income / Revenue) x 100
MRRt + Contraction MRRt) Net Cash Flows / [(1 + discount rate) ^ Measures the level of employee satisfaction
RETURN ON ASSETS (ROA) Number of periods] RETURN ON INVESTMENT (ROI) and commitment to the company
MONTHLY RECURRING REVENUE MRR (Gain from investment - Cost of EMPLOYEE TURNOVER
Net Income / Fixed Assets DEPRECIATION
Number of customers * Average billed investment) / Cost of investment

FOLLOW ON
(# of Employees who left during the period /
amount RETURN ON INVESTMENT (ROI) Acquisition / Useful Life
EARNINGS PER SHARE (EPS) Average # of Employees during the period) x 100
Net Income / Total Investment UTILIZATION
TOTAL ADDRESSABLE MARKET (TAM) CASH FLOW
(Net Income - Preferred Dividends) /

LINKEDIN!
Annual Contract Value per client * Actual Production / Maximum Production Average Outstanding Shares Operating Cash Flow + Investing Cash Flow +
Number of potential clients x 100% Financing Cash Flow

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