Systems › Stoplight Reports · 2 of 4
Key Profit Indicators
By RISE Business Framework · Created by Gary Harper and Brandon McCurdy · Reviewed
Key Profit Indicators are the core measures of a company's financial health. RISE tracks four, owned by the CFO: Revenue, Profit Margin, Cash on Hand and Cash Conversion Cycle. They are reported monthly in quarterly blocks, each ending with an ADJUST row. The Strategic Meeting reviews them.
How RISE does it
- Four indicators: Revenue, Profit Margin, Cash on Hand and Cash Conversion Cycle.
- Cash on Hand is measured in days, not dollars.
- Reported January through December in four quarterly blocks.
- Each block closes with an ADJUST row.
Key Profit Indicators is one of four tools in Stoplight Reports, part of the Systems quadrant of the RISE Business Framework.
The RISE tool
Key Profit Indicator report (Q1 sample)
| Owner | Profit Indicator | Target | Jan | Feb | Mar |
|---|---|---|---|---|---|
| CFO | Revenue | $250k | $241k | $280k | $225k |
| CFO | Profit Margin | 25% | 22% | 26% | 25% |
| CFO | Cash on Hand | 90 Days | 90 | 90 | 90 |
| CFO | Cash Conversion Cycle | 60 Days | 62 | 60 | 58 |
The same four rows repeat for each quarter, closing with ADJUST.
“Key Profit Indicators illuminate the financial path a business treads. They're the compass that steers decisions, helping you sail towards profit-filled horizons.”Gary Harper
AI RISE Coach
Work through Key Profit Indicators with the AI RISE Coach
“Walk me through Key Profit Indicators in the RISE Business Framework and help me apply it to my business.”
Quick self-check
“We have key numbers that each team member knows and tracks on a daily, weekly and monthly basis.”
Frequently asked questions
What financial KPIs should a small business track?
RISE tracks four every month: Revenue, Profit Margin, Cash on Hand and Cash Conversion Cycle.
Why measure cash on hand in days?
Days show how long the business can run on its cash. The RISE sample target is 90 days.
The other tools in Stoplight Reports
- Key Purpose IndicatorsOne clear measure that shows the business is accomplishing the purpose it was born to accomplish, reviewed quarterly.
- Key Performance IndicatorsWeekly result measures by function, such as leads, appointments and transactions, tracked in 12-week quarters.
- Key Process IndicatorsDaily activity and defect measures for Marketing, Sales, Operations and Finance, many with a target of zero.
Related in another quadrant: Long-Term Vision
