Sales growth
How much your sales have gone up or down compared with the previous period.
Sales for the current period ÷ Sales for the previous period − 1
Example: €250,000 ÷ €240,000 − 1 = 4.2%
Financial KPI calculator
Choose an indicator, enter your figures and we give you the result with its formula in plain view. Free, with no sign-up.
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Create my free account30 financial indicators, calculated instantly
Choose the indicator you want to calculate and enter only the data it asks for: each calculation is independent and is done in your browser, without sending or saving anything. If you are unsure about a figure, look at the “How the KPIs are calculated” tab.
Profitability
Liquidity
Working capital
Debt
Risk and efficiency
Opportunity
How the KPIs are calculated
What each number means and where it comes from, so you can check the result yourself. Each example is calculated by the calculator itself with the example figures you see in the fields.
- Abbreviations. Some indicators carry their English abbreviation in brackets, because that is how they appear in reports and accounting software: DSO is the average collection period, DPO the average payment period and DIO the inventory days. EBITDA is the result of your activity before interest, taxes, depreciation and amortization.
- Days in the period. The periods use the commercial year: 360 days if your data is for a year, 90 if for a quarter and 30 if for a month, just like My cash. That way, with the same figures, a period doesn’t change depending on which period you choose. The examples below use data for a year.
- Units. Liquidity and debt ratios are given in times (x): 1.20 x means 1.20 for every 1: for example, 1.20 of current assets for every 1 you owe in the short term. Margins and changes are in percentages (%). The change in margin is in percentage points (p.p.): from 32 % to 26 % is 6 p.p.
- VAT. Constante does not calculate taxes. For the collection and payment periods, use both figures on the same basis: both with VAT or both without VAT.
- 12-month EBITDA. Debt is a snapshot of today. To compare it with what your business generates, EBITDA and interest must be for a whole year: the last 12 months.
- When no number comes out. If a figure is missing, we tell you which one. If the indicator cannot be calculated with your figures (for example, because it would require dividing by 0) or the figures don’t add up, we tell you why instead of giving you a meaningless number.
Profitability
Gross margin (current period)
Out of every 100 you sell, how much is left after paying for what you sold. That pays for everything else: staff, rent, interest…
(Sales − Cost of sales) ÷ Sales
Example: (€250,000 − €170,000) ÷ €250,000 = 32.0%
Gross margin (previous period)
The same gross margin, calculated with the figures of the previous period.
It is useful for comparing: put it next to the gross margin of the current period, or use “Change in gross margin”, and you will see whether your margin is improving or worsening.
(Sales − Cost of sales) ÷ Sales, using the figures of the previous period
Example: (€240,000 − €165,000) ÷ €240,000 = 31.3%
Change in gross margin
How many points your gross margin has gained or lost. It is measured in percentage points (p.p.): going from 32 % to 26 % is losing 6 p.p.
Gross margin of the current period − Gross margin of the previous period
Example: 32.00% − 31.25% = 0.8 p.p.
EBITDA margin (current period)
Out of every 100 you sell, how much your activity leaves you before interest, taxes, depreciation and amortization. If it is negative, the day-to-day business is losing money.
EBITDA ÷ Sales
Example: €18,000 ÷ €250,000 = 7.2%
EBITDA margin (previous period)
The same EBITDA margin, calculated with the figures of the previous period.
It is useful for comparing: put it next to the EBITDA margin of the current period and you will see whether your business leaves you more or less than before.
EBITDA ÷ Sales, using the figures of the previous period
Example: €19,000 ÷ €240,000 = 7.9%
Net margin
Out of every 100 you sell, how much remains as final profit, after all expenses, interest and taxes. If it is negative, there are losses.
Net result ÷ Sales
Example: €5,000 ÷ €250,000 = 2.0%
Liquidity
Current ratio
How many euros you have in the short term (cash, what you are owed, inventory) for every euro you have to pay in less than a year. Below 1, what you have in the short term does not cover what you owe in the short term.
Current assets ÷ Current liabilities
Example: €60,000 ÷ €50,000 = 1.20x
Quick ratio
The same as the current ratio, but without counting stock, which is what takes the longest to turn into money.
(Current assets − Inventory) ÷ Current liabilities
Example: (€60,000 − €30,000) ÷ €50,000 = 0.60x
Cash ratio (cash over current liabilities)
How many euros you have in the bank today for every euro you have to pay in less than a year.
Cash ÷ Current liabilities
Example: €9,000 ÷ €50,000 = 0.18x
Change in cash
How much the money you have in the bank has grown or fallen since the end of the previous period.
Current cash ÷ Cash at the end of the previous period − 1
Example: €9,000 ÷ €10,000 − 1 = −10.0%
Working capital
Days sales outstanding (DSO)
How many days, on average, your customers take to pay you from the time you invoice them.
(What your customers owe you ÷ Credit sales) × days in the period
Example with data from a year: (€40,000 ÷ €220,000) × 360 = 65 days
Days payable outstanding (DPO)
How many days, on average, you take to pay your suppliers from the time they invoice you.
(What you owe suppliers ÷ Purchases) × days in the period
Example with data from a year: (€22,000 ÷ €170,000) × 360 = 47 days
Days inventory outstanding (DIO)
How many days, on average, your stock takes to sell. It is inventory turnover expressed in days: the fewer, the sooner your stock turns into money.
(Inventory ÷ Cost of sales) × days in the period
Example with data from a year: (€30,000 ÷ €170,000) × 360 = 64 days
It equals a turnover of 5.7 times per year: your stock is renewed that number of times (cost of sales ÷ inventory).
Cash cycle
How many days pass from when you pay your suppliers until you collect from your customers: those are the days you finance. If it is negative, you collect before you pay.
Days sales outstanding + Days inventory outstanding − Days payable outstanding
Example with data from a year: 65.5 + 63.5 − 46.6 = 82 days
Overdue invoices over what you are owed
Of everything your customers owe you, what share has already passed its due date without being collected.
Overdue invoices ÷ What your customers owe you
Example: €11,000 ÷ €40,000 = 27.5%
Invoices overdue by more than 90 days
What share of what you are owed has been overdue for more than 90 days. It is the hardest part to collect.
Invoices overdue by more than 90 days ÷ What your customers owe you
Example: €4,000 ÷ €40,000 = 10.0%
Stock that doesn’t turn over (%)
What share of your inventory has gone a long time without selling: cash tied up in the warehouse.
Stock that doesn’t turn over ÷ Total inventory
Example: €4,500 ÷ €30,000 = 15.0%
Change in what your customers owe you
How much what your customers owe you has grown or fallen. If it grows faster than your sales, you are collecting later.
What you are owed now ÷ What you were owed at the end of the previous period − 1
Example: €40,000 ÷ €38,000 − 1 = 5.3%
Change in inventory
How much your stock has grown or fallen. If it grows faster than your sales, you have more cash tied up in the warehouse.
Current inventory ÷ Inventory at the end of the previous period − 1
Example: €30,000 ÷ €28,000 − 1 = 7.1%
Debt
Financial debt / EBITDA
How many years of EBITDA you would need to repay all your debt with banks and finance companies.
Financial debt ÷ EBITDA for the last 12 months
Example: €110,000 ÷ €18,000 = 6.11x
Net debt / EBITDA
The same, but deducting the money you already have in the bank. If it is negative, you have more cash than debt: this is called net cash.
(Financial debt − Cash) ÷ EBITDA for the last 12 months
Example: (€110,000 − €9,000) ÷ €18,000 = 5.61x
Interest cover
How many times what your business generates covers the interest you pay.
EBITDA for the last 12 months ÷ Financial expenses for the last 12 months
Example: €18,000 ÷ €9,500 = 1.89x
Change in financial debt
How much what you owe banks and finance companies has grown or fallen.
Current debt ÷ Debt at the end of the previous period − 1
Example: €110,000 ÷ €95,000 − 1 = 15.8%
Risk and efficiency
Change in staff costs
How much what your team costs you has grown or fallen. Compare it with sales growth.
Staff costs for the current period ÷ Staff costs for the previous period − 1
Example: €50,000 ÷ €48,000 − 1 = 4.2%
Staff costs over sales
Out of every 100 you sell, how much goes on payroll and social security.
Staff costs ÷ Sales
Example: €50,000 ÷ €250,000 = 20.0%
Weight of the main customer
What share of your sales depends on a single customer. The higher it is, the more it affects you if that customer leaves or pays late.
Sales to your main customer ÷ Total sales
Example: €40,000 ÷ €250,000 = 16.0%
Opportunity
Cash you free up if you collect within your target period
The money that would come into your cash if your customers paid within the period you set. What we subtract is what they would owe you if you collected within that period.
What your customers owe you − Target period × Credit sales ÷ days in the period (if negative, 0)
Example with data from a year: €40,000 − 45 days × €220,000 ÷ 360 = €12,500
It is money that comes in only once, not in every period.
Extra profit if you reach your target margin
How much more you would earn with the same sales if your gross margin reached the target you set.
(Target gross margin − Current gross margin) × Sales (if negative, 0)
Example: (34.00% − 32.00%) × €250,000 = €5,000
Stock that doesn’t turn over (€)
The money you have tied up in stock that doesn’t sell.
It is not a calculation: we show it separately because it is money you could turn into cash by clearing, returning or no longer restocking that stock. Use it as a target: how much of this figure you want to free up in the coming months.
The figure you enter, with no calculation
Example: if you enter 4,500 € in “Stock that doesn’t turn over”, the result is €4,500.
Informational support tool; it does not constitute financial, accounting or tax advice.