What this article covers: A reference for BrizoConsol's built-in Liquidity & Cash 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.
Liquidity & Cash KPIs measure the business's ability to meet short-term obligations and maintain sufficient cash flow. They evaluate financial flexibility and short-term solvency — and are particularly important for identifying cash pressure before it becomes a crisis.
🛈 How these KPIs are calculated: Days-based KPIs (DSO, DIO, DPO) use average balances and a 365-day year. Ratio-based KPIs use closing balances at the reporting date. All liquidity KPIs rely on accurate classification of current assets and current liabilities in your chart of accounts — misclassified accounts will produce incorrect results.
KPI Reference
Current Ratio
Current Assets ÷ Current Liabilities
Measures short-term solvency — whether the business has enough current assets to cover its current liabilities. A ratio above 1.0 means current assets exceed current liabilities.
Result
Interpretation
> 1.5
Comfortable liquidity buffer
1.0 – 1.5
Adequate — monitor closely
< 1.0
Current liabilities exceed current assets — potential short-term cash pressure
Quick Ratio (Acid Test)
(Current Assets − Inventory) ÷ Current Liabilities
A stricter liquidity test than the Current Ratio — excludes inventory, which may not be quickly convertible to cash. Tests whether the business can meet its short-term obligations using only liquid assets (cash, receivables, and short-term investments). Particularly important for inventory-heavy businesses where inventory liquidity is uncertain.
Cash Ratio
Cash & Equivalents ÷ Current Liabilities
The most conservative liquidity measure — uses only cash and cash equivalents, excluding all other current assets. Rarely expected to be above 1.0 in a well-run business, as holding excess cash is generally inefficient. Most useful for assessing immediate payment capacity in a stress scenario.
Operating Cash Flow Ratio
Operating Cash Flow ÷ Current Liabilities
Assesses whether cash generated from core operations is sufficient to cover short-term liabilities — a more dynamic measure than balance-based ratios as it uses actual cash flow rather than a snapshot of assets. A ratio above 1.0 means the business generates enough operating cash to cover all current liabilities within the period.
Cash Conversion Cycle
DSO + DIO − DPO
Combines three working capital metrics into a single number representing the net number of days cash is tied up in operations:
- DSO — Days Sales Outstanding (Receivables Days)
- DIO — Days Inventory Outstanding (Days Sales in Inventory)
- DPO — Days Payables Outstanding (Payables Days)
A lower CCC means cash moves through the business faster. A negative CCC — where suppliers are paid after customers have paid — is a sign of strong working capital efficiency. Monitor trends over time rather than reading a single period in isolation.
Where to Use These KPIs
Where
How
Pulse — Key Metrics
Add Current Ratio, Quick Ratio, or Cash Conversion Cycle to your Key Metrics page for a real-time liquidity dashboard
Pulse — Cash Flow
Use Operating Cash Flow Ratio alongside the Cash Flow Analysis page to monitor cash generation against obligations
Health Scores
Include Current Ratio or Operating Cash Flow Ratio as weighted inputs to the Pulse liquidity health score
Custom Reports
Add a rolling 12-month KPI row for Cash Conversion Cycle to track working capital trends over time
