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📊 Financial KPIs Dashboard

Track the right financial metrics to understand your business health and make better decisions.

Why Track KPIs?​

Key Performance Indicators (KPIs) help you:

  • Spot problems early - Before they become crises
  • Make data-driven decisions - Not gut feelings
  • Benchmark performance - Compare to industry standards
  • Identify trends - See what's improving or declining
Key Principle

You can't manage what you don't measure. These KPIs are what matter when evaluating construction companies.

Essential Financial KPIs​

1. Gross Profit Margin​

Formula:

Gross Profit Margin = (Revenue - Direct Costs) ÷ Revenue × 100

Target: 15-25% for GCs, 25-35% for specialty subs

Why it matters: Shows if you're pricing work correctly. Low margins mean you're not covering overhead.

Frequency: Monthly

2. Net Profit Margin​

Formula:

Net Profit Margin = Net Income ÷ Revenue × 100

Target: 2-5% for GCs, 5-10% for specialty subs

Why it matters: Bottom line profitability after all costs.

Frequency: Monthly

3. Overhead Rate​

Formula:

Overhead Rate = Overhead Costs ÷ Direct Costs × 100

Target: 10-20% for most contractors

Why it matters: Ensures you're allocating overhead correctly to jobs.

Frequency: Monthly

4. Current Ratio​

Formula:

Current Ratio = Current Assets ÷ Current Liabilities

Target: 1.2-1.5 or higher

Why it matters: Measures liquidity. Below 1.0 means you can't pay bills.

Frequency: Monthly

5. Working Capital​

Formula:

Working Capital = Current Assets - Current Liabilities

Target: Positive and growing

Why it matters: Cash available to operate. Negative = trouble.

Frequency: Monthly

6. Accounts Receivable Days​

Formula:

AR Days = (Accounts Receivable ÷ Revenue) × Days in Period

Target: 30-45 days

Why it matters: How fast you collect. Over 60 days = cash flow problems.

Frequency: Monthly

7. Accounts Payable Days​

Formula:

AP Days = (Accounts Payable ÷ Cost of Sales) × Days in Period

Target: 30-45 days (match your payment terms)

Why it matters: How long you take to pay. Too long = supplier problems.

Frequency: Monthly

8. Backlog​

Formula:

Backlog = Sum of Unbilled Contract Amounts

Target: 6-12 months of revenue

Why it matters: Future work pipeline. Too low = need more work.

Frequency: Monthly

9. WIP Over/Under Billing​

Formula:

Over/Under = Billings to Date - (Costs to Date + Earned Profit)

Target: Slightly overbilled (5-10%)

Why it matters: Overbilling improves cash flow. Underbilling = cash problems.

Frequency: Monthly

10. Debt-to-Equity Ratio​

Formula:

Debt-to-Equity = Total Debt ÷ Owner's Equity

Target: Under 2.0 (varies by company)

Why it matters: Leverage ratio. Too high = risky.

Frequency: Quarterly

Job-Level KPIs​

Cost Performance Index (CPI)​

Formula:

CPI = Earned Value ÷ Actual Cost

Target: 1.0 or higher

Why it matters: Are you under or over budget? Below 1.0 = over budget.

Schedule Performance Index (SPI)​

Formula:

SPI = Earned Value ÷ Planned Value

Target: 1.0 or higher

Why it matters: Are you ahead or behind schedule? Below 1.0 = behind.

Dashboard Template​

Monthly Financial Dashboard​

MetricThis MonthLast MonthTargetStatus
Revenue$[Amount]$[Amount]$[Amount]✅/⚠️/❌
Gross Margin %[%][%][%]✅/⚠️/❌
Net Margin %[%][%][%]✅/⚠️/❌
Current Ratio[Ratio][Ratio]1.2+✅/⚠️/❌
AR Days[Days][Days]under 45✅/⚠️/❌
Backlog$[Amount]$[Amount]6-12 mo✅/⚠️/❌

Downloadable Resources​

Financial KPIs Dashboard Template (Excel)​

Download: Financial KPIs Dashboard Template - Excel template with automatic calculations

What's Included:

  • Pre-formatted dashboard with all 10 essential KPIs
  • Automatic calculations from your financial data
  • Visual status indicators (green/yellow/red)
  • Monthly tracking columns (12 months)
  • Industry benchmark comparison
  • Trend analysis charts
  • Red flag alerts

How to Use:

  1. Download the Excel template
  2. Enter your monthly financial data
  3. KPIs calculate automatically
  4. Review status indicators
  5. Compare to industry benchmarks
  6. Track trends over time

Quick Reference Cheat Sheet (PDF)​

Download: KPI Quick Reference - One-page printable cheat sheet

What's Included:

  • All 10 KPI formulas
  • Target ranges by company type
  • Red flag indicators
  • One-page printable reference

Setting Up Your Dashboard​

Step 1: Gather Your Data​

You'll need monthly data for:

  • Revenue
  • Direct costs
  • Overhead costs
  • Current assets
  • Current liabilities
  • Accounts receivable
  • Accounts payable
  • Total debt
  • Owner's equity
  • Backlog amount

Step 2: Enter Data Monthly​

Set a consistent date each month (e.g., last day of month) to:

  • Pull financial statements
  • Calculate KPIs
  • Update dashboard
  • Review trends

Step 3: Review and Act​

  • Green indicators - On track, keep doing what you're doing
  • Yellow indicators - Watch closely, may need attention
  • Red indicators - Action required, investigate immediately

Step 4: Share with Team​

Key people should see the dashboard:

  • Owners/Principals
  • CFO/Controller
  • Project Managers (relevant metrics)
  • Operations Manager

Industry Benchmarks​

General Contractors​

MetricGoodAveragePoor
Gross Margin18%+12-18%under 12%
Net Margin3%+1-3%under 1%
Current Ratio1.5+1.2-1.5under 1.2
AR Daysunder 4040-60over 60

Specialty Subcontractors​

MetricGoodAveragePoor
Gross Margin30%+25-30%under 25%
Net Margin8%+5-8%under 5%
Current Ratio1.5+1.2-1.5under 1.2
AR Daysunder 3535-50over 50

Best Practices​

  1. Track consistently - Same metrics every month
  2. Review regularly - Monthly KPI review meeting
  3. Act on trends - Don't wait for problems
  4. Benchmark - Compare to industry standards
  5. Share with team - Key people should know the numbers
Track Monthly

Review these KPIs monthly. Trends matter more than any single month's numbers.