Etienne Cabouat

📊 Top 5 KPIs Every CFO Tracks Monthly ❗️Download a free high-resolution PDF (link in the picture). Behind every strategic decision lies a set of numbers that tell the real story. CFOs don’t just look at the bank balance, they focus on key performance indicators (KPIs) that show whether a company is healthy, growing, or heading for trouble. In this post, we’re breaking down 5 essential KPIs every CFO monitors regularly: 1️⃣ Operating Cash Flow (OCF) OCF is a true reflection of your business’s ability to generate cash from operations. It excludes external financing and investing activities, making it a reliable indicator of financial sustainability. What CFOs look for: • Consistent positive cash flow • Trends across multiple months • Large changes in working capital signals 2️⃣ Gross Profit Margin It reflects how much profit a company makes after covering the direct costs of producing goods or services. Declining margins can signal supply chain issues, pricing pressure, or inefficiencies. What CFOs look for: • Margin consistency by product or service • Trends vs. industry benchmarks • Impact of pricing changes or cost inflation 3️⃣ Current Ratio It measures your ability to pay short-term obligations with short-term assets. Too low = potential liquidity risk. Too high = possibly inefficient use of assets. What CFOs look for: • Optimal range for their industry (typically 1.5–2.0) • Impact of upcoming payments or seasonal cycles • Month-over-month movement 4️⃣ Burn Rate This tells how quickly your company is spending cash. For high-growth or early-stage businesses, tracking burn rate is critical to know how long the runway lasts before needing new funding. What CFOs look for: • Runway = Cash Balance / Monthly Burn • Whether spending is aligned with growth milestones • Opportunities to cut or optimize expenses 5️⃣ EBITDA Margin EBITDA margin shows how much core profit is generated per dollar of revenue before taxes, interest, depreciation, and amortization. It’s useful for performance comparisons across companies. What CFOs look for: • Margin stability across months • Impacts from new investments or operational changes • Peer benchmarks in similar industries 💡 Note: Tracking these KPIs isn’t about one-off insights—it’s about trends. CFOs monitor month-over-month changes to make agile, data-driven decisions that support long-term growth. 💬 Which KPI do you consider most important for tracking company performance? Drop your thoughts in the comments! ✅ Follow Financial Modeling World Cup for daily finance content!

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Weekly Cash Flow Forecast Credits to Bojan Radojicic  follow him for more finance insights! ~~~~~~~~~ 𝙏𝙝𝙚 𝙤𝙧𝙞𝙜𝙞𝙣𝙖𝙡 𝙥𝙤𝙨𝙩 𝙞𝙨 𝙝𝙚𝙧𝙚: Looking for stabile short term cash flow? I've made my first weekly CF forecast when I struggled with $500.000 overdue liabilities 12 years ago under strong pressure of CEO. 𝗛𝗲𝗿𝗲'𝘀 𝗵𝗼𝘄 𝗜 𝘀𝘂𝗿𝘃𝗶𝘃𝗲𝗱: Get started: 𝗖𝗔𝗦𝗛 𝗜𝗡𝗙𝗟𝗢𝗪𝗦 𝗙𝗢𝗥𝗘𝗖𝗔𝗦𝗧 ▶️ List your customer aging balance with due dates ▶️ Mark customers who pay on time - and transfer due amounts to appropriate week ▶️ Analyze late paying customers and overdues - and make best estimate of expected collection ▶️ List other receivables and forecast weekly inflows ▶️ Based on cash sales analysis, forecast cash flow from new sales ▶️ Check with sales department is there some advance payments is expected ▶️ Make weekly forecast of finance inflows based on new loans or overdrafts 𝗖𝗔𝗦𝗛 𝗢𝗨𝗧𝗙𝗟𝗢𝗪𝗦 𝗙𝗢𝗥𝗘𝗖𝗔𝗦𝗧 ▶️ List your suppliers aging balance with due dates ▶️ Transfer due amounts to appropriate week ▶️ Consider if some suppliers allow later payment and make outflows in appropriate week. ▶️ Take into account all payments that should be executed but they are not in the books currently (you can make procedure on how you will be informed about this) ▶️ Check with purchase department is there some advance payments is expected ▶️ Make weekly forecast of finance outflows based on loans/leasing schedules ~~~~~~~~~ 𝗗𝗢𝗪𝗡𝗟𝗢𝗔𝗗 𝗟𝗜𝗡𝗞: https://lnkd.in/dw68_SbC ~~~~~~~~~ 📌 If you want to upgrade your career in finance, start with our Corporate Finance Modeling Masterclass: 💠 Planning and forecasting 💠 Cash flow management 💠 Financial statement analysis 💠 Valuations Start here: https://bojanfin.com/ Learn now, save big! Take advantage of the 𝟯𝟱% 𝗵𝗼𝗹𝗶𝗱𝗮𝘆 𝗱𝗶𝘀𝗰𝗼𝘂𝗻𝘁—upgraded program content means no more discounts after January 15th. ~~~~~~~~~

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10 Crucial Investing Ratios 1️⃣ Gross margin (GM) 🎯 What? The company's gross profit compared to its revenue 💡 Formula? Sales - COGS / Sales 2️⃣ EBIT Margin 🎯What? What percentage of sales remains as profit before tax and interest 💡 Formula? EBIT / Sales 3️⃣ Debt-to-Assets 🎯What? The total amount of debt a company has relative to its assets 💡 Formula? Debt / Assets 4️⃣ Debt-to-Equity 🎯What? Ratio used to calculate a company's financial leverage 💡Formula? Debt / Equity 5️⃣ CAPEX/Sales 🎯What? Measures the capital intensity of a company 💡 Formula? Capital Expenditures / Sales 6️⃣ Return On Equity (ROE) 🎯What? Indicates how profitable a company is in relation to its equity 💡 Formula? Net Income / Equity 7️⃣ Return On Invested Capital (ROIC) 🎯What? Shows you how efficiently a company is allocating capital 💡 Formula? NOPAT / Total Inv. Capital 8️⃣ Earnings Per Share (EPS) 🎯What? How much money a company makes for each share outstanding 💡 Formula? Net Income / Shares Outstanding 9️⃣ Free Cash Flow Realization 🎯What? Measures how much earnings are translated into free cash flow 💡 Formula? Free Cash Flow / Net Income 🔟 Price-to-Earnings Ratio (P/E) 🎯What? Ratio that compares a company's share price to its earnings per share 💡Formula? Price Per Share / Earnings Per Share Which ratio would you add? 📚 Grab my free Financial Analysis course here: https://lnkd.in/eJtj3pFa

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📢 𝗣𝗢𝗦𝗧 𝗖𝗟𝗢𝗦𝗘𝗗 Get the Materials here 👉 https://shorturl.at/CTU1U 📚 𝗠&𝗔 𝗮𝗻𝗱 𝗣𝗼𝘀𝘁-𝗠𝗲𝗿𝗴𝗲𝗿 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻 Access four essential guides for finance professionals 👉 The guides include: 🔍 𝗠&𝗔 𝗦𝘆𝗻𝗲𝗿𝗴𝗶𝗲𝘀 𝗮𝗻𝗱 𝗩𝗮𝗹𝘂𝗲 𝗖𝗿𝗲𝗮𝘁𝗶𝗼𝗻 A deep dive into why half of M&A transactions fail to deliver expected value. This guide breaks down financial, revenue, and capital synergies — and how to avoid overestimating them. 🚀 𝗣𝗼𝘀𝘁-𝗠𝗲𝗿𝗴𝗲𝗿 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻 (𝗣𝗠𝗜) 𝗖𝗵𝗲𝗰𝗸𝗹𝗶𝘀𝘁𝘀 The first 100 days can make or break a deal. This structured playbook covers key PMI success factors, communication strategies, operational alignment, and cost savings execution. 💡 𝗖𝗮𝘀𝗲 𝗦𝘁𝘂𝗱𝗶𝗲𝘀 𝗼𝗳 𝗦𝘂𝗰𝗰𝗲𝘀𝘀𝗳𝘂𝗹 𝗠𝗲𝗿𝗴𝗲𝗿𝘀 From billion-dollar energy deals to pharma giants, learn how industry leaders executed seamless integrations, overcame cultural hurdles, and maximized synergies — based on real-world examples. 🌍 𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝗦𝘆𝗻𝗲𝗿𝗴𝗶𝗲𝘀 𝗧𝗼𝗼𝗹𝗸𝗶𝘁 A strategic framework for leveraging synergies in cross-border partnerships — exploring governance, funding mechanisms, and collaboration models that drive efficiency and innovation. To get the materials, all you have to do is: 1️⃣ 𝗟𝗶𝗸𝗲 𝘁𝗵𝗲 𝗽𝗼𝘀𝘁 𝗮𝗻𝗱 𝗳𝗼𝗹𝗹𝗼𝘄 Private Equity Bro 2️⃣ 𝗖𝗼𝗺𝗺𝗲𝗻𝘁 "𝗚𝘂𝗶𝗱𝗲𝘀" 3️⃣ 𝗪𝗲 𝘄𝗶𝗹𝗹 𝘀𝗵𝗮𝗿𝗲 𝗮 𝗹𝗶𝗻𝗸 𝘁𝗼 𝘁𝗵𝗲 𝗿𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀

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CEOs need Strategic Finance. But here’s the problem: Original post by Oana Labes, MBA, CPA - Follow her for more Most CFOs focus on Budgets. If your finance team is just budgeting and forecasting… You’re at best tracking where you'll end up. Not engineering where you need to be. Reactive finance is holding everyone back.   Let’s break it down. What Most CFO Offices Provide vs. What CEOs Actually Need For SMBs (<$50M in revenue): ↳ Controllership (compliance, reporting, closing the books) For Growing Mid-Market ($50M–$100M): ↳ Controllership + FP&A (budgeting, forecasting, variance analysis) For Large Mid-Market ($100M–$500M): ↳ Controllership + Treasury + FP&A (cash management, debt, liquidity strategy) What’s missing? The expertise that ensures a business doesn’t just react to financial results— but actually engineers them. Most companies don’t reach $500M+ because they waited too long to adopt strategic finance. Here’s what Strategic Finance does differently: 1️⃣ Capital readiness—always. You should never be scrambling for capital. Strategic finance optimizes capital structure at every step, ensuring you’re 12–18 months ahead of funding needs. 2️⃣ Board-ready, lender-ready, investor-ready. Deep analysis and financial storytelling condition performance before you get in the room—not after the numbers are locked in. 3️⃣ From reactive finance to financial leadership. Instead of reporting what happened, strategic finance shapes the outcome to align with business objectives. And that’s the difference between companies that plateau… And those that scale to $500M+ without missing a beat. Strategic finance expertise is rare outside Large Mid-Market. Financiario is democratizing it for everyone. Most CEOs want higher valuations. Few have the financial engine to get there. Financiario gives you the strategy, tools, and insights to scale smarter. Even without a CFO. See it in action → https://lnkd.in/eW2tBzQT

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💼 Every valuation analyst needs a strong accounting foundation. In this short video, we cover five essential skills: 1️⃣ Financial statement analysis 2️⃣ Knowledge of GAAP and IFRS 3️⃣ Financial modeling 4️⃣ Valuation techniques (DCF, comps, and more) 5️⃣ Attention to detail These skills define accuracy, insight, and credibility in valuation work. 👉 Follow CFI for more practical finance and accounting tips. #CorporateFinance #Accounting #Valuation #FinancialModeling #FinanceProfessionals #FinancialAnalysis #FPandA #CFI

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The Finance Gem 💎 #87 - Accounting vs Finance AND why the the Difference Matters Today’s Finance Gems: ➡️Accounting and Finance Are NOT the Same ➡️Accounting vs. Finance KPIs ➡️Accounting vs. Finance: Controlling vs. FP&A

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8 Business Budget Methodologies Great post by: Nathan Liao, CMA Original post below ⬇️⬇️⬇️ 8 Business Budget Methodologies A CFO's guide 👇🏼 Budgeting is key to successful biz planning But with myriad methodologies available Which one is right for your business? Let's break them down: 1️⃣ Incremental Budgeting: It begins with the current period's budget and adds/subtracts based on new data. Best for: Stable industries without much flux. Watch out for: May perpetuate past inefficiencies. 2️⃣ Zero-Based Budgeting: Start from scratch each period. Every expense must be justified. Best for: Organizations looking for an overhaul or to eliminate redundant costs. Watch out for: Can be time-consuming and requires thorough review. 3️⃣ Activity-Based Budgeting: Expenses are allocated based on activities that incur costs. Best for: Service industries or any sector wanting to link costs to performance. Watch out for: Can be complex; requires detailed activity analysis. 4️⃣ Value Proposition Budgeting: Allocate funds based on activities that offer the most value. Best for: Organizations focused on ROI. Watch out for: Requires clear understanding of value drivers. 5️⃣ Rolling (or Continuous) Budgets: Constantly updated by adding a new period (e.g., month or quarter) as the last one completes. Best for: Volatile industries where rapid changes are frequent. Watch out for: Demands regular updates, so can be labor-intensive. 6️⃣ Flexible Budgeting: Adjusts as volume or activity levels change. Best for: Industries with unpredictable sales volumes like retail. Watch out for: Needs frequent recalibration. 7️⃣ Static Budgeting: Fixed budget, unaffected by business volume or activity changes. Best for: Small businesses with predictable expenses. Watch out for: Limited flexibility can cause variances. 8️⃣ Project Budgeting: Specifically designed for individual projects. Best for: Construction, event planning, or other project-based industries. Watch out for: Overemphasis might neglect overarching business needs. ______________ Follow for more Useful Infographics

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