Auditor Metrics

Accounts Payable (AP) is the total amount a company owes to its suppliers and creditors for goods and services purchased on credit and not yet paid. AP appears on the balance sheet as a current liability, representing short-term obligations due within one year.

Accounts Receivable (AR) is the total value of invoices a company has issued to customers for goods or services delivered but not yet paid. AR appears on the balance sheet as a current asset because payment is expected within one year. It represents a legal obligation from the customer and is recorded when an invoice is issued, not when cash is received. Tracking AR accurately gives finance teams a real-time view of money owed and helps forecast cash flow.

Cash and Cash Equivalents (CCE) is the total value of a company's cash on hand plus short-term liquid assets convertible to cash within three months. CCE appears as the first line item on a company's balance sheet and is a primary indicator of liquidity. A strong CCE balance signals the ability to meet operating obligations, service short-term debt, and fund growth without external financing.

Charges represent the total amount of customer payments processed through your payment gateway, net of refunds, disputes, and reversals. Depending on the payment platform, Charges may be reported before or after processing fees; in analytics and finance contexts, this metric is often aligned with net charges collected rather than gross payment volume. Charges reflect the actual value of customer payments successfully processed and retained through a payment system.

The Cost Of Goods Sold (COGS) is the measure of direct costs incurred by a company to manufacture or deliver their product or service. Costs typically include raw material and direct labour, but this varies from business to business, depending on the products or services that are being sold. COGS is the building block to understanding Gross Margin and Gross Margin Percent.

Current assets are the assets a company expects to convert to cash within one year, as reported on the Balance Sheet or Statement of Financial Position. Finance teams track current assets alongside current liabilities to calculate liquidity ratios such as the Current Ratio, Quick Ratio, and Working Capital. Common current asset accounts include cash and cash equivalents, accounts receivable, inventory, prepaid expenses, short-term investments, and trade receivables.

Current liabilities are the total value of all debts and obligations a company owes to creditors that must be settled within one year. Current liabilities appear on the balance sheet and are evaluated alongside current assets to assess a company's short-term financial solvency. Common accounts include accounts payable, deferred revenue, interest payable, short-term debt, and dividends payable.

Disputed Charges measures the total value of charges that have been challenged and may be reversed. This metric represents the amount of money that could potentially be deduced from your net charges.

EBITDA Margin is a financial ratio that measures a company's earnings before deducting non-operating expenses as a percentage of revenue. The calculation excludes accounting expenses such as interest, taxes, depreciation, and amortization to give an overall view of operating profitability and cash flow generation capability.

Financial Debt is a company's non-operational debt. With low interest rates and a supply of lenders, debt in non-financial corporations has steadily risen in the past 15 years, benefiting some companies, but putting others at risk.

Net Burn, often referred to as Burn Rate, is the amount a company is losing per month as they burn through their cash reserves. It occurs when a company’s operating costs are higher than their revenue. A company that is profitable and generating cash has a "negative Net Burn".

Net Income is the profit remaining after subtracting all expenses, including COGS, operating costs, taxes, and interest, from total revenue. It appears at the bottom of the income statement and is one of the most direct measures of a business's profitability. Also called the bottom line, Net Income is used by investors, analysts, and management to evaluate financial health and guide strategic decisions.