cash
Cash Burn Rate
Net Cash spent by a company a specific time frame
cash spent - cash received
Average Days Delinquent
measures effectiveness of collection efforts. Often used at client level to compare with the others
Days Sale Outstanding Best possible Day sales outstanding
Operating Cash Flow (OCF)
money generated by daily operations
Net Income + Non-Cash
Expensive - Increase In Working Capital
Free Cash Flow (FCF)
Expands on the OCF concept by also excluding interest payments and including asset purchases
ocf + interest Payments Asset purchase
Overdues Ratio
Measures your effectiveness of collecting and the quality of your receivables
overdue / total Receivables
Days of Inventory Outstanding
Average number of days that a company holds inventory for before turning it into sales
Average inventory / yearly cost of goods solds x 365 days
Days Sales Outstanding
Average number of davs that takes a company to Collect payment for a sale
Average account receivables / Annual sales x 365 days
Days Payables Outstanding
Average number of davs that takes a company to pay its suppliers
Average Account Payable / year cost of goods solds x 365 days
Cash Conversion Cycle
Day to convert inventor into cash flows from sale.
DIO•DSO-DPO
Casn keserves in Days
measures of how long your organization could survive if cash dried up tomorrow
cash Reserves / Average daily expenses