Use these 10 KPIs to analyze a company's cash:

Cash Flow From Operations (CFFO)

- Measures the net cash generated or used in the business's regular operations.
- Formula: Net Income + Non-Cash Expenses +/- Changes in Working Capital

Free Cash Flow (FCF)

- Represents the cash available to the company after all expenses, investments, and other cash
flows have been accounted for.
- Formula: Cash Flow from Operations - Capital Expenditures

Quick Ratio (Acid-Test Ratio)

- An immediate measure of liquidity.
- Formula: (Cash + Receivables) / Current Liabilities

Current Ratio
- Indicates the company's ability to pay its short-term obligations.
- Formula: Current Assets / Current Liabilities

Days Inventory Outstanding (DIO)

- Measures the average number of days to sell inventory.
- Formula: (Average Inventory / Cost of Goods Sold) x Number of Days in the Period

Days Sales Outstanding (DSO)

- Measures the average number of days to collect payments from customers.
- Formula: (Accounts Receivable / Total Credit Sales) x Number of Days in Period

Days Payable Outstanding (DPO)

- Measures the average number of days to pay suppliers.
- Formula: (Accounts Payable / Total Credit Purchases) x Number of Days in Period

Cash Conversion Cycle (CCC)

- Calculates the time in days for a company to convert inventory into cash.
- Formula: DIO + DSO - DPO

Cash Burn Rate

- Indicates how quickly a company is using up its cash reserves.
- Formula: (Beginning Cash Balance - Ending Cash Balance) / Number of Months

Cash Runway
- Measures the number of months until an unprofitable company will run out of cash.
- Formula: Cash Balance / Cash Burn Rate