List of Key Financial Metrics with Formulas and Benchmarks

Key Financial Metrics: Formulas, Importance, and Benchmarks

A Straightforward Financial Reference for Business Owners Who Want to Stay in Control

You don’t have to be a CFO to understand the health of your business, but you do need to know what to look for. Financials don’t lie. And for any business owner serious about scaling, sustaining profitability, or simply making smarter day-to-day decisions, understanding key financial metrics is non-negotiable.

That’s why Capacity Building Solutions created Key Financial Metrics: Formulas, Importance, and Benchmarks—a clear, concise resource that breaks down essential financial indicators every leader should know.

Why This Document Matters

Too many business owners rely on gut instinct or high-level summaries from others when reviewing financials. This document gives leaders a deeper grasp of the actual numbers driving (or draining) performance, without requiring an accounting degree.

It’s designed to help leaders:

• Speak more confidently with finance professionals

• Identify red flags before they become major issues

• Benchmark performance against industry norms

• Make data-driven decisions about pricing, staffing, investment, and growth

What’s Inside

This guide covers the most important financial metrics, including:

• Profitability Metrics—Gross profit margin, net profit margin, EBITDA

• Liquidity Metrics—Current ratio, quick ratio

• Efficiency Metrics—Inventory turnover, accounts receivable days

• Leverage Metrics—Debt-to-equity, interest coverage ratio

• Growth Metrics—Revenue growth, return on equity

Each metric is clearly defined with:

• A simple formula

• A brief explanation of why it matters

• Benchmark guidance to help interpret the results

It’s a quick reference, a coaching tool, and a confidence-builder for any business leader who wants to feel more in control of their financial picture.