Treasurer Metrics

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.

The Cash Conversion Cycle, also knows as Cash-to-Cash Cycle Time, is the time between when a business pays its suppliers and when the business receives payment from its customers, usually expressed in days. Keeping active tabs on your Cash Conversion Cycle will aid you in monitoring your finances as cash flows in and out of your business.

The Debt to Equity Ratio measures how much debt a company uses to finance its assets relative to the value held by shareholders. A high ratio signals that growth is funded primarily through borrowed money, which can accelerate expansion but increases financial risk. Lenders and investors watch this ratio closely because it reveals how much cushion shareholders provide if the business faces losses.

Debt-to-revenue rate is the ratio of a company's total long-term debt to its annual revenue. It measures financial leverage: the higher the ratio, the more debt a business carries relative to the revenue it generates.

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.

Return on Invested Capital is a profitability metric that measures how efficiently a company generates profit from its deployed capital. It is calculated by dividing Net Operating Profit After Tax (NOPAT) by invested capital and expressed as a percentage.