A financial KPI is a numeric indicator that summarises one aspect of a company's economic health (profitability, liquidity, efficiency, growth) and is tracked every period against a target, to know whether the business is on plan.
What it includes
Each KPI has a definition, a formula, a data source, a frequency and a target. The most common: revenue growth, gross margin, EBITDA margin, burn rate, runway, DSO, DPO, working capital over sales and, in SaaS, ARPA and customer acquisition cost. They are usually grouped in a dashboard of 6 to 10 indicators.
Example with numbers
Monthly dashboard: revenue 500,000 (target 480,000, +4%), gross margin 62% (target 60%), EBITDA 40,000 (target 35,000), DSO 58 days (target 45), runway 18 months. Four KPIs green and one red: DSO, which signals that growth is being financed with the company's own cash.
How Fibady does it
Financial KPIs are calculated on the consolidation that arrives from the ERP, and dynamic metrics combine accounting figures with operating data from Google Sheets (customers, units, headcount). Each KPI is shown per entity and for the group, with its monthly trend, and opens down to the figures behind it.