Mohamed Shaaban

15 Most Important Financial KPIs (With Their Formulas) 1- Revenue Growth Rate This KPI measures the percentage increase in revenue from one period to another, indicating the company's ability to generate more sales over time. The formula is [(Current Period Revenue - Previous Period Revenue) / Previous Period Revenue] * 100. A higher growth rate suggests business expansion and market demand. 2- Profit Margin Profit margin assesses the efficiency of a company's cost management and pricing strategy. It's the ratio of net profit to total revenue, expressed as a percentage. The formula is (Net Profit / Total Revenue) * 100. A healthy profit margin signifies effective control over expenses and sustainable profitability. 3- Return on Investment (ROI) ROI evaluates the return generated from an investment relative to its initial cost. The formula is [(Net Profit - Initial Investment) / Initial Investment] * 100. A positive ROI indicates that the investment has yielded profits, while a negative ROI suggests losses. 4- Operating Cash Flow Ratio This ratio demonstrates a company's ability to meet its short-term liabilities with cash generated from its core operations. The formula is Operating Cash Flow / Current Liabilities. A ratio greater than 1 signifies a comfortable liquidity position. 5- Current Ratio The current ratio measures a company's short-term liquidity by comparing current assets to current liabilities. The formula is Current Assets / Current Liabilities. A ratio above 1 indicates the company has enough assets to cover its short-term debts. 6- Debt-to-Equity Ratio This ratio showcases the proportion of debt used to finance a company's assets in comparison to shareholders' equity. The formula is Total Debt / Shareholders' Equity. A higher ratio might indicate higher financial risk. 7- Gross Margin Gross margin calculates the percentage of revenue that exceeds the cost of goods sold. The formula is [(Total Revenue - Cost of Goods Sold) / Total Revenue] * 100. A higher gross margin implies the company can cover operating expenses and generate profit more effectively. 8- Accounts Receivable Turnover This KPI evaluates how efficiently a company collects payments from customers. The formula is Net Credit Sales / Average Accounts Receivable. A higher turnover indicates efficient credit management. 9- Inventory Turnover Inventory turnover measures the number of times inventory is sold and replaced within a specific period. The formula is Cost of Goods Sold / Average Inventory. A high turnover indicates effective inventory management. 10- Working Capital Working capital represents the funds available to cover day-to-day operations. It's calculated as Current Assets - Current Liabilities. Positive working capital ensures operational continuity. ........ *11:15 in comments* #CPD #important Financial tips

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In fiscal year 2022, PricewaterhouseCoopers led the audit fee market share, receiving 35.7% of total audit fees paid by S&P 500 companies in FY2022. Collectively, the Big Four constituted 99.7% of the S&P 500 market share. In FY2022, PWC invoiced $1.9B audit fee, followed by E&Y with $1.5B. When analyzing auditor ranks in terms of average audit fees per client, PwC led again. In FY2022, PwC received an average of $12.6 million in audit fees per S&P 500 client, followed by Deloitte $11.4M. In terms of audit fees per million dollars of client revenue, PWC once again ranked highest from the Big4 companies, receiving $432 in audit fees per million dollars of client revenue, followed by Deloitte of $371. In FY2022, the manufacturing and finance industries paid the highest amount in total audit fees compared to other industries. Together, S&P 500 manufacturing and finance companies comprised nearly 69% of total audit fees paid by the index. General Electric was the leading manufacturing company, paying $57.6 million in audit fees for FY2022. Whereas, Goldman Sachs was the leading finance company, paying $78.1 million in audit fees for FY2022.

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Strong managerial skills are the bridge between a great idea and its successful execution. The right leadership turns plans into action and vision into results.

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Financial figures is the most important reflection of good strategy The below measurements should be part of each business KPI, it’s the moment of truth

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The modern CFO isn’t just about numbers; it’s about steering the company toward sustainable growth, digital innovation, and long-term success. This conference offers a fantastic opportunity to exchange ideas with industry leaders and stay ahead in this ever-evolving role. 📊🌍 InThe 15th MENA CFO International Conference 🌟🔍💼 I am 🔍 Looking forward to insightful discussions and speaking on how today’s CFOs are driving change in areas such as: Speaking on Generative AI in Finance Digital Transformation Sustainability & ESG Reporting I’m especially eager to engage in conversations around "CFO Now vs CFO Then," focusing on how the role has evolved and what the future holds for finance leaders. 📅 Join me from September 17-19 at the Dusit Thani, Dubai, and let’s explore how we can shape the future of finance together. A big thank you to marcus evans Group Marcus Evans and IMA | Institute of Management Accountants USA| Institute of Management Accountants for the invitation and the opportunity to engage with thought leaders in the field of finance. #MENA #CFO #FinanceLeadership #DigitalTransformation #Sustainability #Networking #ProfessionalDevelopment #15MENACFO

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Successful implementation A well-executed strategy can give an organization a significant competitive advantage.

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Are you ready >> The new episode is available now on YouTube channel - Harry Up 🏃‍♂️‍➡️ Watch and learn English 💪💪 https://lnkd.in/dw2S9yku #learnenglish #movie #english #englishlearning #improveyourenglish #learning #learnenglish #speakenglish #learn #learnenglish #learnenglishwithmovies #englishlearning #movies #english #speakenglish #learnenglish

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Every decision you make will bring its own set of problems and challenges. As business leaders aiming to accomplish our organization's ambitions, breaking down problems to their fundamental elements and making well-informed choices along the way will provide our business with the opportunity to not only survive but thrive in today's rapidly evolving business landscape. Achieving your strategic ambition will require enhanced decision making and problem solving capabilities in today's world. #decisionmaking #problemsolving #businessstrategy.

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Financial leadership is not just about numbers and calculations; it's about making the right decisions in challenging times and building bridges of trust between the company and its partners.

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Diversity: In the context of Human Creation! Humans being are unified and to inderstand the unification we have to examine it from the lense of human creation i.e., role of time and space in the creation of human being, laws of cause & effects and relation of spirit and physical existence of human beings. Compelete video link --> https://lnkd.in/efkn6S_u

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You think CFOs just need to know the financial terms. Being a CFO is about applying financial insights to real scenarios, steering strategic decisions, and guiding the company through complex fiscal landscapes.  🚀🌟 Apply to join the Inner Circle of Visionary CEO’s 🌟🚀 Our community is a safe place to Network and Elevate your Strategic thinking and Leadership skills. Seize the Opportunity! Check out the About section in my bio for more details.Learn. Unlearn. Relearn

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Finance is like the scorekeeper ⚽ and coach of a successful business. It plays a crucial role in helping to understand why and how we fall short of our targets and is responsible for providing insightful analysis to interpret what happened and why it happened. 💼

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All You need to do is find the right path.

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AI Success Depends on the CFO, Not IT | Gartner Finance Keynote Discover key insights from the Gartner Finance Keynote, shedding light on the critical role of senior finance executives in AI transformation. Understanding the four stalls - cost overruns, misuse in decision-making, loss of trust, and a rigid mindset - is vital for addressing challenges and driving successful AI implementation. Watch the keynote for actionable strategies: https://lnkd.in/gaGbAzBi #AI #CFO #AItransformation #gartner

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Lateral moves or demotions can be demoralizing ego-bruisers. Leaders should position them as opportunities to reset career goals, reskill and regain confidence before resuming the climb up the corporate ladder.

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Dive deep into the secrets of successful CEOs with this enlightening guide on the essential tools for top-tier leadership. From maintaining a fluid cash flow to implementing robust profitability analysis frameworks and gaining valuable insights from your balance sheet—this video equips you with the necessary skills to steer your team towards undeniable success. Elevate your business acumen and lead with confidence. ~~~ If you found this helpful, reshare this post to your network and follow me for daily content.

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📚 Top Business Leaders’ Favorite Books of 2024: Insights for the Modern Professional BusinessWeek’s annual list of the year’s 49 best books is more than just a reading guide—it’s a window into the minds of today’s top leaders. These books reveal what challenges, trends, and opportunities are shaping their strategies and perspectives. From The Longevity Imperative (on the societal opportunities of extended life spans) to Possible (on finding growth in conflict), the selected titles reflect a universal theme: how to navigate a complex, rapidly changing world with clarity and purpose. One standout is Morgan Housel’s Same as Ever: A Guide to What Never Changes, which reminds us to focus on timeless human behaviors rather than chasing unpredictable trends. For leaders, this is a critical insight—understanding the constants of human decision-making can be the key to thriving in uncertain times. Another compelling pick, The War Below, highlights the geopolitical and environmental complexities of critical resources like lithium and copper, showing how the intersection of local tensions and global imperatives will shape industries for decades. What’s clear from this list is that today’s top minds aren’t just seeking knowledge; they’re using it to build resilience, foster innovation, and drive meaningful change. 💡 Which books have influenced your leadership style this year? How do they help you balance strategy and adaptability in your industry? #Leadership #BusinessWisdom #TopReads2024 #PurposeAndProfit #CFO

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