Posted inAll private sectors / Finance & Control / Financial / Sales

Cash Flow Margin

Definition of this KPI:
Cash Flow Margin measures the efficiency of converting sales into actual cash, showing what percentage of sales is being transformed into cash flow. It’s a key indicator of liquidity and operational efficiency.


  • This KPI can be calculated as: (Operating Cash Flow / Net Sales) × 100
  • The KPI will be measured as: percentage (%)
  • How to interpret the KPI: higher is better
  • The strategic objective to measure with this KPI: Enhance operational efficiency by maximizing the conversion of sales into cash, ensuring that the business has sufficient liquidity to cover its obligations and invest in growth opportunities.
  • Rate this post

    Leave a Reply

    Your email address will not be published. Required fields are marked *


    The reCAPTCHA verification period has expired. Please reload the page.