article thumbnail

6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

Average Days Delinquent (ADD) ADD is an essential cash flow metric. It offers data on the effectiveness of your collection efforts by measuring the average number of days it takes to collect overdue payments.

article thumbnail

How Dynamic Cash Flow Planning Can Be a Game Changer for CFOs

Gaviti

Here are some of the most important ones to monitor: Collection effectiveness index. Days sales outstanding. Average days delinquent. Analyze Cash Flow Metrics Regularly. CFOs should keep an eye on key performance indicators. Accounts payable aging. Inventory turnover ratios. Current accounts payable.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

5 Strategies for Cash Flow Optimization in the Transportation and Logistics Industry

Gaviti

By automating and streamlining your A/R collections process, you can eliminate tedious spreadsheets and manual processes and stop relying on A/R teams to chase customers for overdue invoices.

article thumbnail

5 Strategies for Cash Flow Optimization in the Transportation and Logistics Industry

Gaviti

By automating and streamlining your A/R collections process, you can eliminate tedious spreadsheets and manual processes and stop relying on A/R teams to chase customers for overdue invoices.

article thumbnail

How to Automate the Collection Process to Eliminate Manual Tasks

Gaviti

Although different A/R solutions deliver different metrics, cash balance and days sale outstanding only scratch the surface of measuring performance. Consider tracking A/R performance metrics that include best possible DSO , average days delinquent (ADD), collective effectiveness Index (CEI), and accounts receivable turnover ratio (ART).

article thumbnail

Collections Dashboard: Why Is It an Essential Growth Tool?

Gaviti

This metric measures how long a company takes to collect on its invoices. Collection Effectiveness Index. The CEI measures how well a company’s collection efforts are working. A high CEI means the company is collecting on its invoices quickly and efficiently while a low CEI shows room for improvement.