FINANCE metrics

Quickbooks online

Thomas Bolvig Amorøe avatar
Written by Thomas Bolvig Amorøe
Updated over a week ago

Generally, the Finance dashboards rely on a solid mapping of your Chart of accounts.

When connecting to e-conomic, GoSimplo applies the best possible, automatic mapping, but important that setup is reviewed for accuracy and completeness - right here.

EBITDA

Formula for EBITDA is: Revenue – Direct costs – Overhead costs

Hence expressing the performance of your basic operations before Depreciation, Financial items, and Company tax.

P/L budget numbers (targets)

Here you can either input an overall budget to Revenue, Direct costs, and Overhead costs - or you can import a detailed budget on finance account level.

CASH BALANCE

Like P/L categories, this is simply reflecting the balances of the finance account(s) that have been mapped to this category.

COMPOUND GROWTH RATE

This metric focuses on the start and end value of a certain period and takes into consideration the effect of “interest on interest”. The general formula is:

Example using Years as the time span:

Year 1: 1.000

Year 2: 1.100 – growth rate = 10%

Year 3: 1.320 – growth rate = 20%

Year 4: 1.518 – growth rate = 15%

In this, where Ending balance is 1.518 and Beginning balance is 1.000, compound growth rate = 14,93%

CLIENT PAYMENT DAYS

A metric indicating how many days go by before we in average are paid by our clients. The formula is:

Average daily client (debtor) balance last 12 months / Sales incl. VAT last 12 months * 365

SUPPLIER PAYMENT DAYS

The twin metric indicating how many days go by before we in average pay our suppliers. The formula is:

Average daily supplier (creditor) balance last 12 months / Purchases incl. VAT last 12 months * 365

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