Learn KPIs & Financial Metrics

Improve the cash position by shortening the collection cycle and lengthening the payables cycle, focusing on days sales outstanding and payable outstanding to widen the gap between them.

learn how to calculate days sales outstanding (DSO) from accounts receivable and credit sales, interpret industry benchmarks, and improve cash collection by negotiating terms and simplifying payments.

Calculate days payable outstanding (dpo) as accounts payable divided by cost of goods sold times days, and push toward the 90-day average by negotiating terms and paying at period end.

Explain key performance indicators for financial leverage, including debt to equity, debt to capital, debt to assets, and the financial leverage ratio, using a balance sheet example.

Learn how SpaBooker operates as an online marketplace linking consumers with local spa spots via a mobile app, earning commissions on bookings while growing supply, demand, and take rate.

Examine SpaBooker's income statement to map revenue, cost of sales, and EBITDA, and identify KPIs like gross booking value, take rate, and customer acquisition cost for break-even.

Track year-over-year growth in spa inventory by May 2020 (30) vs May 2019 (20), a 50% increase. Improve drivers like product design, self-service signup, territory expansion, and sales incentives.

Discover how gross booking value measures the platform's total bookings monthly. Track the growth pace toward milestones like ten million, and understand how inventory, users, and marketing influence progress.

Calculate the average spend per user as total booking value divided by unique users; track monthly trends and raise spend by offering higher value services and engaging users.

Define take rate as commission divided by the total booking value and track it monthly to gauge marketplace power. Increase commissions over time, improve billing accuracy, and automate invoicing.

Analyze the KPI of customer acquisition cost by dividing marketing costs by new users, track monthly trends, and optimize channels, content, and incentives to lower CAC.

Explore how spa booker functions as a marketplace that connects spas and users, driving growth through inventory expansion, higher gross booking value, and improved take rate.

Analyze take rate as commission over total booking value, illustrated by a 30% take rate on May data. Improve by renegotiating commissions, ensuring billing accuracy, and monitoring CAC across channels.

Explore debits and credits through a car sale example, using t accounts and the dealer mnemonic to classify assets, expenses, liabilities, equity, and revenue for journal entries.

The matching principle requires recognizing revenues and expenses in the same period; for example, record a $5,000 commission in March by accruing a liability and later paying in April.

Learn the accrual principle of accounting by recording expenses when incurred rather than when paid, illustrated with a March advertising invoice billed in April under GAAP.

Learn how the historical cost principle records assets at their original cost, with a $10,000 machinery example and five-year amortization, and why mark-to-market violated it in Enron.

Analyze Enron's mark-to-market accounting that booked future revenue today, inflating earnings and stock performance, and review the 2001 bankruptcy, auditors, and the Sarbanes-Oxley internal controls framework.

Apply the objectivity principle to record revenues and expenses using evidence such as purchase orders, invoices, payments, and bank statements, ensuring audit-ready backup.