A financial dashboard helps to track all your relevant finance KPIs in one central point of access. It empowers finance departments to stay on top of the financial performance of a company, allows for an effective cash management and enables to track expenses, sales and profits in detail to meet financial objectives.
This finance dashboard example provides an easy to understand overview of the Income Statement from revenue to net profit, enhanced by relevant performance ratios. The finance dashboard centers around four important financial indicators; Gross Profit Margin, OPEX Ratio, Operating Profit Margin and Net Profit Margin. The heads-up information, right at your fingertips, can be further utilised to reveal month-to-month trends in the Opex Ratio and the constituent subcomponents of that ratio, as well as year-to-date statistics of Earnings before Interest and Taxes (EBIT). Finally, the financial dashboard gives a succinct breakdown of the four financial category subcomponents of the overall income statement.
We start with Revenue which is mainly influenced by selling price and number of units sold, and is indicated without taking into account other expenditures or taxes. Subtracting the Cost of Goods Sold shows the Gross Profit of your company and indicates the earnings after expenditures. OPEX refers to the costs that your company incurs as a result of performing its normal business operations. These “unavoidable” costs are inherent in any business operation but imperative to understand completely. In this finance dashboard template we specifically look at the OPEX for Sales, Marketing, IT, and General & Administrative Expenses. We also include Other Income and Expenses in the P&L statement which might include costs incurred from restructuring and currency exchange, amongst others. The resulting Earnings Before Interest and Taxes (EBIT) and especially its trend is one of the main metrics to describe the financial situation of a company. At the end - after (subtracting) all cost related to interest and tax payments - you have your net profit. The Net Profit is the standard calibration for evaluating the success or failure of a company or certain aspects of its operations.
Next to the Profit & Loss Statement, this dashboard shows important performance metrics that describe the health of your business and the profitability of your operations. When comparing these KPIs across companies, it is important to consider that the figures might change significantly across different industries, however this is a standard means of evaluating financial company performance so comparisons can be made equitably and reliable. With this finance dashboard template, you have this crucial information at your fingertips for real-time monitoring, what enables you to take the right actions at the right time.
The Gross Profit Margin shows the percentage of total sales revenue remaining after accounting for all direct costs associated with producing your goods or services. It indicates to what extent your efforts in this company, investments, R&D, etc. are actually contributing towards earning profit. The Operating Profit Margin or EBIT Margin is calculated by dividing your EBIT by the Revenue generated in the same period. The Net Profit Ratio indicates how well your company does at turning revenue into profits - how much percent of every dollar generated will be remaining in your company as profit. The Net Profit Ratio is an excellent yardstick to evaluate performance in light of investments, market fluctuations and other operational considerations.
Our second financial dashboard template provides an overview of your liquidity and current cash flow situation, while providing you with a strong indication or how you can improve these metrics situation by optimising processes handling Accounts Payable and Accounts Receivable. In detail it is giving you a quick overview of the Quick Ratio, Current Ratio, Cash Balance and your outstanding debts.
At first, the cash management dashboard examines your Current Ratio and your Quick Ratio. The Current Ratio is a financial metric that indicates the liquidity of a company and its ability to pay short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). This KPI is simply the ratio between current liabilities and current assets and demonstrates the flexibility your company has in immediately using money for acquisitions or to pay off debts. You should always aim to have a ratio higher than 1:1 to make sure that you can pay your obligations at any time. This financial dashboard affords you the opportunity to immediately ensure that your company has the financial fluidity that it needs to survive and thrive.
The Quick Ratio, also referred to as an Acid-Ratio-Test, gives a more conservative view on the liquidity situation and does not include inventory and other less liquid assets as part of the short-term assets to meet the liabilities. If your current assets include a lot of inventory, your Acid Test Ratio will be much lower than your Current Ratio. Similar to the Current Ratio, a Quick Ratio greater than 1 indicates that your business is able to pay the current liabilities with the most liquid assets. Both ratios in this financial dashboard template are greatly influenced by your Accounts Payable and Accounts Receivable Turnover, which measure on the one hand at which speed you pay your own bills and on the other hand how fast you are collecting your payments owed.
Last but not least our financial dashboard example provides an immediate visualisation of your current Accounts Payable and Accounts Receivable situation. It affords you an opportunity to quickly reflect on your current expenditures and money to be collected in order to ensure that no payments remain outstanding for too long, and similarly that payments you owe do not take you into arrears. At the bottom of the dashboard the Accounts Receivable information is broken down over the course of a year, whereby you may analyse payment and debt collection patterns as they relate to your Current and Quick Ratios, the two litmus tests of the financial liquidity and stability of your enterprise.
Our last financial dashboard example gives you an overview of how efficiently you spend your capital and gives you an overview of the main metrics on your balance sheet. It is broken down into four visualisations of your Return on Assets (ROA), Working Capital Ratio (WCR), Return on Equity (ROE) and Debt-Equity Ratio (DER). These four key performance indicators give an immediate understanding of trends in how your company’s assets are being managed. The balance sheet breakdown shows how your Current Assets (Cash, Account Receivable, Inventory) as well as your Long-Term Assets, and it also provides information about your Total Liabilities, depicted by the two subcomponents of Current Liabilities and Shareholder Equity.
This financial dashboard template provides you good information about the capital structure of your company. The Debt-Equity Ratio measures how much debt you are using to finance your assets and operations in comparison to the equity available. It is calculated by dividing your total liabilities by your shareholders equity. Return on Assets, and even more importantly Return on Equity, are key figures on the stock market when it comes to evaluating your company as an investment opportunity. The more debt a company has, the larger is its ROE compared to its ROA.
This financial dashboard example closely monitors these two ratios to ensure that you can maintain control over these extremely important financial aspects of your company in real-time. Letting these ratios go unchecked is a recipe for disaster and can lead to unexpected losses, bankruptcy and loss of client base or assets. Furthermore, Return on Assets is a critical litmus-test of your company’s success and is a major indicator to potential investors. Companies with low Return on Assets face severe difficulties whilst attempting to attract investors. Shareholders and investors will further be aware of your Return on Equity, which ultimately represents to them how much money your company will return on their investments. Use this dashboard to keep a close eye on these essential aspects of your company’s progress and ensure its long-term viability and success.
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