KPIs

The KPI Library contains a collection of essential Key Performance Indicators (KPIs) tailored to specific business functions and strategic objectives. By utilizing the KPI Library, businesses can streamline performance monitoring, benchmark against industry standards, identify areas for improvement, and ultimately achieve their strategic goals.

The Jirav KPI library includes Cash, Balance Sheet, Workforce, Employee, Expense and Financial Ratio key performance indicators as described below.

Cash KPIs

• Cash on Hand:

  • Cash on Hand represents the liquidity of a company, indicating the amount of money readily available to meet immediate obligations such as payroll, bills, and investments. It's crucial for assessing short-term financial health and ability to handle unforeseen expenses.
  • Formula: Cash on Hand=Balance of Bank Accounts

• Change in Cash:

  • Change in Cash measures the difference in Cash on Hand between the current month and the prior month. It provides insights into the cash flow trend, helping businesses track their ability to generate and manage cash over time.
  • Formula: Change in Cash=Current Month Cash on Hand−Prior Month Cash on Hand

• Runway:

  • Runway represents the number of months a company can sustain its operations with the current Cash on Hand without additional cash inflows. It's a key metric for startups and businesses experiencing financial challenges, indicating their ability to survive and plan for the future.
  • Formula: Runway=Cash on Hand/Change in Cash

• Zero Cash Date:

  • The Zero Cash Date is the estimated point in time when a company's Cash on Hand will reach zero based on the current Runway. This metric is helpful for financial planning and decision-making, helping businesses take proactive steps to secure additional funding or improve cash flow.
  • Formula: Zero Cash Date = This month + Runway

• Operating, Investing, and Financing Cash Flow:

  • These metrics analyze the sources and uses of cash within different areas of a company's operations. Operating Cash Flow reflects the cash generated or consumed by core business activities, while Investing and Financing Cash Flows indicate cash flows related to investments and financing activities, respectively. Understanding these cash flows helps assess the effectiveness of a company's strategies and financial management.
  • Formulas:
    • Operating Cash Flow=Total change in Operating Accounts
    • Investing Cash Flow=Total change in Investing Accounts
    • Financing Cash Flow=Total change in Financing Accounts

Balance Sheet KPIs

• Accounts Receivable (A/R) and Accounts Payable (A/P):
  • Accounts Receivable represents the amount of money owed to a company by its customers, while Accounts Payable represents the amount the company owes to its suppliers. Monitoring these balances is essential for managing cash flow, optimizing working capital, and ensuring timely payments and collections.
  • Formulas:
    • Accounts Receivable (A/R)=Balance of all accounts that are Accounts Receivable within the General Ledger system
    • Accounts Payable (A/P)=Balance of all accounts that are Accounts Payable within the General Ledger system

Workforce KPIs

• Salary Run Rate and Salary Run Rate Annualized:

  • These metrics forecast the total period salary expenses based on data from the workforce module. They are vital for budgeting, resource allocation, and assessing the financial impact of workforce management decisions.

  • Formulas:
    • Salary Run Rate=Salary Forecast
    • Salary Run Rate Annualized=Salary Run Rate×12

• Headcount Distribution % & Ratio:

  • Headcount Distribution measures the proportion of staff in each department relative to the total workforce. It helps identify resource allocation, organizational structure, and staffing needs for optimal operational efficiency.
  • Formulas:
    • Headcount Distribution %=(Headcount of respective Department / Total Headcount) * 100%
    • Headcount Distribution Ratio: Headcount of respective Department / Total Headcount

Employee KPIs

• Revenue per Employee, COGS per Employee, Gross Margin per Employee, Operating Income per Employee, Net Income per Employee, and OpEx per Employee:

  • These metrics assess the efficiency and profitability of human capital by relating financial performance to the number of employees per the workforce module. They help evaluate productivity, cost management, and employee contribution to overall financial results.
  • Formulas:
    • Revenue per Employee=Total Revenue / Total Headcount
    • COGS per Employee=Total COGS / Total Headcount
    • Gross Margin per Employee=Gross Margin / Total Headcount
    • Operating Income per Employee=Operating Income / Total Headcount
    • Net Income per Employee=Net Income / Total Headcount
    • OpEx per Employee=Total Operating Expenses / Total Headcount

• Revenue by Salary:

  • Revenue by Salary compares total revenue generated to the total salary expense per the workforce module. It provides insights into the return on investment in human capital and helps evaluate the effectiveness of workforce management in driving revenue growth.
  • Formula: Revenue by Salary=Total Revenue / Total Salary

• % Salary by Department/Role

  • This metric calculates the proportion of total salary expenditure attributed to each department or role within an organization. By analyzing the distribution of salary expenses across different departments or roles, businesses gain insights into resource allocation, staffing priorities, and labor cost management strategies.

  • Formula: % Salary by Department/Role=Salary of respective Department and Role / Total Salary

Expense KPIs

• OpEx as % of Revenue, COGS as % of Revenue, Total Expense as % of Revenue, % OpEx, COGS, Total Expense by Department, OpEx as % of Total Expense, and COGS as % of Total Expense:

  • These metrics analyze expense composition, efficiency, and allocation relative to revenue and total expenses. They are important for cost control, financial planning, and performance evaluation across different departments and expense categories.

    • Formulas:

      • OpEx as % of Revenue=(Total Operating Expenses / Total Revenue) × 100%

      • COGS as % of Revenue=(Total COGS / Total Revenue) × 100

      • Total Expense as % of Revenue=(OpEx + COGS / Total Revenue) × 100

      • % OpEx by Department=(OpEx of Respective Department / Total OpEx) * 100%

      • % COGS by Department=(COGS of Respective Department / Total COGS) * 100%

      • % Total Expense by Department=((OpEx + COGS of Respective Department) / Total OpEx + COGS) * 100%

      • OpEx as a % of Total Expense= (OpEx / (OpEx + COGS)) * 100%

      • COGS as a % of Total Expense= (COGS / (OpEx + COGS)) * 100% 

      • Total COGS, OpEx (Dashboards only) displays Total COGs + Top Level OpEx Accounts

      • Total COGS, OpEx, Total Other (Dashboards only) displays Total COGS + Top Level OpEx Accounts + Total Other Expense

      • COGS, OpEx (Dashboards only) displays Top Level COGS Accounts and Top Level OpEx Accounts

Financial Ratio KPIs