Some Cash Management KPIs worth considering

Cash Management KPIs

§ Amount of discount offered customers for timely remittance
§ Average balances in non-interest bearing accounts
§ Average daily idle cash
§ Average number of days bills are paid before due date
§ Average time between receipt and deposit of funds
§ Cash flow
§ Collection period (accounts receivable divided by sales per day)
§ Delinquent payment penalties as a percentage of purchases
§ Interest expense as a percentage of net capital
§ Length of cash cycle (time from payment for raw materials to ultimate collection of receivables from
sales)
§ Percentage of past due payables to total payables
§ Purchase discounts taken
§ Ratio of customer remittances by electronic means versus by check
§ Ratio of interest earned to average cash balances
§ Ratio of actual to planned cash flows