12 Most Important Treasury KPIs


The top KPIs for Treasury are essential as they provide measurable values that reflect the effectiveness and efficiency of an organization's financial health and liquidity management. By tracking KPIs such as cash conversion cycle, working capital ratio, debt-to-equity ratio, and interest coverage ratio, Treasurers can gain insights into the company's operational performance and its ability to meet short-term obligations and invest in growth opportunities.

These indicators help in forecasting cash flow, managing risks associated with currency and interest rates, and making informed decisions about financing and investment strategies.

This article showcases the Most Critical 12 KPIs for Treasury and Associated Benchmarks.

1. Cash Flow

Cash Flow is a critical performance indicator that reflects the liquidity of an organization and its ability to meet short-term obligations.

It directly influences business outcomes such as operational efficiency, investment capacity, and financial health. A positive cash flow enables companies to reinvest in growth initiatives, pay down debt, and enhance shareholder value.

Conversely, negative cash flow can signal potential liquidity crises, impacting strategic alignment and long-term sustainability. Learn more about the Cash Flow KPI.

View Common Pitfalls
View Improvement Levers

We have 9 benchmarks for this KPI available in our database.

View Cash Flow Benchmarks

What is the standard formula?
Net Cash from Operating Activities + Net Cash from Investing Activities + Net Cash from Financing Activities


Related KPI Categories

2. Cash Balance

Cash Balance is a critical performance indicator that reflects a company's liquidity and financial health.

It directly influences business outcomes such as operational efficiency, investment capacity, and risk management. Maintaining an optimal cash balance allows organizations to meet obligations, invest in growth opportunities, and navigate economic uncertainties.

Companies with strong cash positions can also enhance their creditworthiness, leading to favorable financing terms. Learn more about the Cash Balance KPI.

View Common Pitfalls
View Improvement Levers

We have 6 benchmarks for this KPI available in our database.

View Cash Balance Benchmarks

What is the standard formula?
Total Cash and Cash Equivalents at a Point in Time

3. Free Cash Flow (FCF)

Free Cash Flow (FCF) is a crucial metric that measures a company's financial health by assessing the cash generated after accounting for capital expenditures.

It directly influences business outcomes such as investment capacity, dividend payments, and debt reduction. High FCF indicates strong operational efficiency and the ability to fund growth initiatives without external financing.

In contrast, low FCF can signal potential liquidity issues, limiting strategic alignment with long-term goals. Learn more about the Free Cash Flow (FCF) KPI.

View Common Pitfalls
View Improvement Levers

We have 5 benchmarks for this KPI available in our database.

View Free Cash Flow (FCF) Benchmarks

What is the standard formula?
Net Cash from Operating Activities - Capital Expenditures


Related KPI Categories

4. Working Capital

Working Capital is a critical financial metric that reflects a company's operational efficiency and short-term financial health.

It directly influences liquidity, cash flow management, and the ability to invest in growth opportunities. Effective management of working capital can lead to improved ROI metrics and enhanced strategic alignment with business objectives.

Companies that optimize this KPI often see better performance indicators, enabling them to respond swiftly to market changes. Learn more about the Working Capital KPI.

View Common Pitfalls
View Improvement Levers

We have 6 benchmarks for this KPI available in our database.

View Working Capital Benchmarks

5. Liquidity Coverage Ratio (LCR)

Liquidity Coverage Ratio (LCR) serves as a critical measure of a financial institution's ability to withstand short-term liquidity disruptions.

It directly influences cash flow management, risk assessment, and overall financial health. A higher LCR indicates a robust capacity to meet obligations, while a lower ratio may signal potential liquidity issues.

Organizations leveraging LCR effectively can enhance operational efficiency and align their strategies with market demands. Learn more about the Liquidity Coverage Ratio (LCR) KPI.

View Common Pitfalls
View Improvement Levers

We have 8 benchmarks for this KPI available in our database.

View Liquidity Coverage Ratio (LCR) Benchmarks

What is the standard formula?
High-Quality Liquid Assets / Total Net Cash Outflows over 30 days


Related KPI Categories

6. Current Ratio

Current Ratio is a vital financial ratio that measures a company's ability to cover short-term liabilities with short-term assets.

It serves as a key performance indicator for assessing liquidity and financial health. A higher ratio indicates a stronger ability to meet obligations, which can enhance investor confidence and operational efficiency.

Conversely, a low ratio may signal potential cash flow issues, impacting strategic alignment and business outcomes. Learn more about the Current Ratio KPI.

View Common Pitfalls
View Improvement Levers

We have 5 benchmarks for this KPI available in our database.

View Current Ratio Benchmarks

What is the standard formula?
Current Assets / Current Liabilities


Related KPI Categories

7. Quick Ratio

The Quick Ratio serves as a critical measure of a company's short-term liquidity and financial health.

It assesses the ability to meet short-term obligations without relying on inventory sales, making it essential for cash flow management. A higher Quick Ratio indicates stronger operational efficiency and a buffer against financial distress.

This KPI influences business outcomes such as creditworthiness, investment attractiveness, and overall risk management. Learn more about the Quick Ratio KPI.

View Common Pitfalls
View Improvement Levers

We have 2 benchmarks for this KPI available in our database.

View Quick Ratio Benchmarks

What is the standard formula?
(Cash + Marketable Securities + Accounts Receivable) / Current Liabilities


Related KPI Categories

8. Debt Service Coverage Ratio (DSCR)

Debt Service Coverage Ratio (DSCR) is a critical financial ratio that measures a company's ability to service its debt obligations.

It directly influences cash flow management, operational efficiency, and overall financial health. A higher DSCR indicates a stronger capacity to meet debt payments, which can enhance creditworthiness and lower borrowing costs.

Conversely, a low DSCR may signal potential liquidity issues, prompting management to reassess financial strategies. Learn more about the Debt Service Coverage Ratio (DSCR) KPI.

View Common Pitfalls
View Improvement Levers

We have 4 benchmarks for this KPI available in our database.

View Debt Service Coverage Ratio (DSCR) Benchmarks

9. Debt-to-Equity Ratio

Debt-to-Equity Ratio is a crucial financial ratio that reflects a company's financial health by comparing its total liabilities to shareholders' equity.

This KPI influences business outcomes such as capital structure optimization and risk management. A higher ratio indicates greater reliance on debt, which can amplify returns but also increases financial risk.

Conversely, a lower ratio suggests a more conservative approach, potentially leading to lower returns but enhanced stability. Learn more about the Debt-to-Equity Ratio KPI.

View Common Pitfalls
View Improvement Levers

We have 2 benchmarks for this KPI available in our database.

View Debt-to-Equity Ratio Benchmarks

What is the standard formula?
Total Liabilities / Total Shareholders' Equity


Related KPI Categories

10. Interest Coverage Ratio

Interest Coverage Ratio (ICR) is a critical financial metric that measures a company's ability to meet its debt obligations.

It directly influences financial health, operational efficiency, and strategic alignment. A higher ratio indicates robust earnings relative to interest expenses, suggesting lower risk for stakeholders.

Conversely, a low ICR can signal potential liquidity issues, prompting management to reassess cost control metrics and debt strategies. Learn more about the Interest Coverage Ratio KPI.

View Common Pitfalls
View Improvement Levers

We have 5 benchmarks for this KPI available in our database.

View Interest Coverage Ratio Benchmarks

11. Net Debt to EBITDA Ratio

Net Debt to EBITDA Ratio is a critical financial ratio that gauges a company's ability to pay off its debt using its earnings before interest, taxes, depreciation, and amortization.

This KPI influences financial health, operational efficiency, and cost control metrics. A lower ratio indicates stronger financial stability, while a higher ratio may signal potential liquidity issues.

Companies with a favorable ratio can invest more in growth initiatives, enhancing their strategic alignment. Learn more about the Net Debt to EBITDA Ratio KPI.

View Common Pitfalls
View Improvement Levers

We have 4 benchmarks for this KPI available in our database.

View Net Debt to EBITDA Ratio Benchmarks

What is the standard formula?
Net Debt / EBITDA


Related KPI Categories

12. Cost of Capital

Cost of Capital is a critical financial metric that reflects the cost of obtaining funds to finance operations and growth.

It influences key business outcomes such as investment decisions, project viability, and overall financial health. Companies with a lower cost of capital can pursue more projects, enhancing operational efficiency and improving ROI metrics.

Conversely, a higher cost may limit strategic alignment and hinder growth initiatives. Learn more about the Cost of Capital KPI.

View Common Pitfalls
View Improvement Levers

We have 5 benchmarks for this KPI available in our database.

View Cost of Capital Benchmarks

What is the standard formula?
Weighted Average Cost of Capital (WACC)


Related KPI Categories


These 12 Treasury KPIs were selected to provide a balanced view of liquidity, operational efficiency, and capital structure. They combine cash management metrics like Cash Flow and Cash Balance with solvency ratios such as Debt Service Coverage Ratio and Interest Coverage Ratio. This subset captures both short-term liquidity and long-term financial health, enabling comprehensive treasury oversight.

Monitor Free Cash Flow alongside Capital Expenditures to assess cash generation after investments. A declining Working Capital with a stable Current Ratio signals potential inventory or receivables issues. Track Liquidity Coverage Ratio in tandem with Cash Balance—divergence may indicate liquidity stress despite apparent cash reserves. Debt-to-Equity Ratio paired with Interest Coverage Ratio reveals leverage sustainability; rising debt with falling interest coverage warns of solvency risk.

Prioritize Cash Flow and Cash Balance first, as they are foundational, frequently updated, and directly reflect treasury’s immediate cash position. Add Free Cash Flow next to evaluate operational cash generation net of investments. Finally, incorporate Debt Service Coverage Ratio to assess debt repayment capacity. The full Treasury KPI set, with formulas and benchmarks, is available in the KPI Depot database.

Subscribe for Full Access to KPI Depot
Unlock smarter decisions with instant access to 20,000+ KPIs and 30,000+ benchmarks. Only $199/year.


Subscribe Today for Only $199


Related Best Practices


These best practice documents below are available for individual purchase from Flevy , the largest knowledge base of business frameworks, templates, and financial models available online.


KPI Depot (formerly the Flevy KPI Library) is a comprehensive, fully searchable database of over 20,000+ KPIs and 30,000+ benchmarks. Each KPI is documented with 12 practical attributes that take you from definition to real-world application (definition, business insights, measurement approach, formula, trend analysis, diagnostics, tips, visualization ideas, risk warnings, tools & tech, integration points, and change impact).

KPI categories span every major corporate function and more than 150+ industries, giving executives, analysts, and consultants an instant, plug-and-play reference for building scorecards, dashboards, and data-driven strategies.

Our team is constantly expanding our KPI database and benchmarks database.

Got a question? Email us at support@kpidepot.com.



Each KPI in our knowledge base includes 12 attributes.

KPI Definition

A clear explanation of what the KPI measures

Potential Business Insights

The typical business insights we expect to gain through the tracking of this KPI

Measurement Approach

An outline of the approach or process followed to measure this KPI

Standard Formula

The standard formula organizations use to calculate this KPI

Trend Analysis

Insights into how the KPI tends to evolve over time and what trends could indicate positive or negative performance shifts

Diagnostic Questions

Questions to ask to better understand your current position is for the KPI and how it can improve

Actionable Tips

Practical, actionable tips for improving the KPI, which might involve operational changes, strategic shifts, or tactical actions

Visualization Suggestions

Recommended charts or graphs that best represent the trends and patterns around the KPI for more effective reporting and decision-making

Risk Warnings

Potential risks or warnings signs that could indicate underlying issues that require immediate attention

Tools & Technologies

Suggested tools, technologies, and software that can help in tracking and analyzing the KPI more effectively

Integration Points

How the KPI can be integrated with other business systems and processes for holistic strategic performance management

Change Impact

Explanation of how changes in the KPI can impact other KPIs and what kind of changes can be expected


Compare Our Plans


FAQs about KPI Depot


What does unlimited web access mean?

Our complete KPI and benchmark database is viewable online. Unlimited web access means you can browse as much of our online KPI and benchmark database as you'd like, with no limitations or restrictions (e.g. certain number of views per month). You are only restricted on the quantity of CSV downloads (see question below).

Can I download a KPI group (e.g. Competitive Benchmarking KPIs)?

Yes. You can download a complete KPI group (which includes all inclusive KPIs and respective attributes data) as a CSV file. Basic plan subscribers receive 5 downloads a month; Pro plan subscribers receive 20 downloads a month.

To gain a better sense of the KPI data included, you can download a sample CSV file here. Note the CSV download only includes KPI attribute data; and not benchmark data.

Can I can cancel at any time?

Yes. You can cancel your subscription at any time. After cancellation, your KPI Depot subscription will remain active until the end of the current billing period.

Do you offer a free trial?

We allow you to preview all of our KPI groups. If you are not a KPI Depot subscriber, you can only see the first 3 KPIs in each group.

What if I can't find a particular set of KPIs?

Please email us at support@kpidepot.com if you can't find what you need. Since our database is so vast, sometimes it may be difficult to find what you need. If we discover we don't have what you need, our research team will work on incorporating the missing KPIs. Turnaround time for these situations is typically 1 business week.

Where do you source your benchmark data?

We compile benchmarks from multiple high-quality sources and document the provenance for each metric. Our inputs include:

Each benchmark lists its source attribution and last-updated date where available. We are constantly refreshing our database with new and updated data points.

Do you provide citations or references for the original benchmark source?

Yes. Every benchmark data point includes a full citation and structured context. Where available, we display:

We cite the original publisher and link directly to the source (or an archived link) when possible. Many KPIs have multiple independent benchmarks; each appears as its own entry with its own citation.

What payment methods do you accept?

We accept a comprehensive range of payment methods, including Visa, Mastercard, American Express, Apple Pay, Google Pay, and various region-specific options, all through Stripe's secure platform. Stripe is our payment processor and is also used by Amazon, Walmart, Target, Apple, and Samsung, reflecting its reliability and widespread trust in the industry.

Are multi-user corporate plans available?

Yes. Please contact us at support@kpidepot.com with your specific needs.