What this article covers: A reference for BrizoConsol's built-in Efficiency KPIs — the formula behind each KPI and how to interpret the result. For a full list of all KPI categories, see Built-in KPIs Overview.

Efficiency KPIs measure how effectively the business uses its assets and manages its working capital cycle.

🛈 How these KPIs are calculated: Turnover KPIs (Asset Turnover, Fixed Asset Turnover, Current Asset Turnover) are annualised — a single-month figure is multiplied by 12, and a year-to-date figure is scaled by 12 ÷ months elapsed. KPIs that use average balances calculate the average from the opening and closing balances for the selected period. Days-based KPIs use the actual number of days in the period.

KPI Reference

Asset Turnover

Formula: Annualised Revenue ÷ Average Total Assets

What it measures: How efficiently total assets are used to generate revenue. A higher ratio indicates better asset utilisation. Average = (opening + closing) ÷ 2.

Fixed Asset Turnover

Formula: Annualised Revenue ÷ Average Fixed Assets

What it measures: Productivity of long-term investments. Capital-intensive businesses typically have lower ratios; asset-light businesses have higher ones.

Current Asset Turnover

Formula: Annualised Revenue ÷ Average Current Assets

What it measures: How well short-term assets (bank, receivables, inventory, and other current assets) support sales generation. Average current assets = (opening + closing) ÷ 2.

Receivables Days

Formula: Average Accounts Receivable ÷ Revenue × Days in Period

What it measures: The average number of days taken to collect payment from customers. Longer periods increase working capital requirements.

Payables Days

Formula: Average Accounts Payable ÷ Cost of Goods Sold × Days in Period

What it measures: The average number of days taken to pay suppliers. Longer payables days improve short-term cashflow but may strain supplier relationships.

Inventory Days

Formula: Average Inventory ÷ Cost of Goods Sold × Days in Period

What it measures: The average number of days inventory is held before being sold. Shorter cycles suggest faster turnover and better liquidity.

Cash Conversion Cycle

Formula: Receivables Days + Inventory Days − Payables Days

What it measures: The total time taken to convert inventory and receivables into cash, net of supplier payment terms. A shorter cycle means faster cash generation. A negative cycle means the business is paid before it pays its suppliers.

Capital Intensity

Formula: Total Assets ÷ Revenue

What it measures: How much asset investment is required to generate each dollar of revenue. High capital intensity is typical of manufacturing and infrastructure businesses.

Working Capital Ratio

Formula: Current Assets ÷ Current Liabilities

What it measures: Same calculation as Current Ratio — available as an efficiency metric for working capital analysis pages.

Where to Use These KPIs

FeatureSuggested use
Pulse Key MetricsAdd Receivables Days, Payables Days, and Cash Conversion Cycle to the Key Metrics page.
Pulse Receivables & PayablesReceivables Days and Payables Days appear on their respective Pulse pages.
Custom ReportsUse Asset Turnover or Fixed Asset Turnover in custom report rows to show asset productivity alongside the P&L or balance sheet.
Health ScoresAdd Cash Conversion Cycle or Current Asset Turnover to health score pages for operational efficiency reviews.
Related Articles
Built-in KPIs OverviewFinancial Performance KPIsLiquidity & Cash KPIsLeverage & Risk KPIsCustomising Pulse KPIs & Health ScoreBuilt-in Reports in BrizoConsol