Cash Flow Return on Investment CFROI

Cash Flow Return on Investments CFROI calculation = Cash Flow ÷ Market value of capital employed

Cash Flow Return on Investments ratio is part of the financial and accounting ratios of value creation.

It helps to realize high sales volume with low controllable costs and small investments in assets.

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Accounting KPIs

Here are the main KPIs for the Accounting.  They are part of the Accounting Dashboard or Balanced Scorecard.

Please see the following table and the Finance section for more ratios and KPIs.

-> Recommended bibliography about accounting KPIs

Activity Subject Calculation
General Accounting Gross Profit Margin Gross profit / total revenue
Operating Profit Margin EBIT/ Sales
Compound annual growth rate (CAGR) (finish value / start value)1/number of years – 1
Cash Flow Return on Investment – CFROI Cash Flow / Market value of capital employed
Net Profit Margin Net Income / Net Sales
Assets Turnover – AT Sales ÷ Operating Assets
Accounts payable Cost Invoicing processing costs
Outstanding invoices Total sum of monetary value of outstanding invoices
Number of invoices outstanding
Dispute Total value of invoices disputed
Percentage of invoices disputed
Overdue invoices Total monetary value of overdue invoices
Percentage of overdue invoices
Creditor days Average time that a company takes to pay its creditors
Days Payable Number of days necessary to pay accounts payable
Accounts payable Turnover Total supplier purchases / average accounts payable
Quality Average time to resolve invoice errors
Percentage of electronic invoices
Accounts receivable Cost Processing invoices costs
Outstanding invoices Total sum of monetary value of outstanding invoices
Number of invoices outstanding
Dispute Total value of invoices disputed
Percentage of invoices disputed
Overdue invoices Total monetary value of overdue invoices
Percentage of overdue invoices
Percentage of bad debts against invoiced revenue
Debtor days Average time payment takes
Accounts receivable Collection Period Number of days necessary to collect all accounts receivable
Accounts receivable Turnover Annual credit sales / average accounts receivable
Quality Average time to resolve invoice errors
Percentage of electronic invoices (see EDI)


Recommended bibliography

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