10 Key Financial Metrics Every Controller Should Track

Because spreadsheets don’t lie… but they can definitely hide things.

Controllers are the unsung heroes of the finance department. You’re part detective, part fortune-teller, and part therapist for stressed-out executives who just want the numbers to look better.

But let’s be real. In a world of endless data and dashboards, it’s easy to drown in numbers that seem important but don’t actually move the needle.

That’s why we’ve narrowed it down to 10 essential financial metrics every controller should keep on a short leash.

1. Gross Profit Margin (GPM)

Let’s start with the obvious. If you’re not tracking gross profit margin, you’re flying blind. GPM tells you what percentage of revenue is left after subtracting the cost of goods sold (COGS). In other words, it's how much your company makes before overhead eats its lunch.

Formula: (Revenue - COGS) / Revenue

Why it matters: It’s the financial pulse check for product profitability. If margins are shrinking faster than your patience during audit season, something needs attention.

2. Net Profit Margin

Take gross profit one level deeper. Net profit margin accounts for all expenses—operational, taxes, interest, you name it. This is where we separate the “we’re doing great!” companies from the “we have a cash flow problem” ones.

Formula: Net Income / Revenue

Why it matters: This tells you how much money is actually being kept. Spoiler alert: Revenue growth means nothing if net profit margin is running on fumes.

3. Operating Cash Flow (OCF)

Revenue might look sexy on a pitch deck, but cash flow is what keeps the lights on. OCF shows how much cash your business generates from regular operations—without fancy financing tricks.

Why it matters: You can’t pay employees in “accrued revenue.” If your OCF is negative, even with strong sales, it’s time to dig into accounts receivable and working capital.

4. Accounts Receivable Turnover

Speaking of which—how fast are customers paying you? This metric shows how efficiently you’re collecting outstanding invoices.

Formula: Net Credit Sales / Average Accounts Receivable

Why it matters: A low turnover ratio can point to slow-paying clients (or worse, credit policies that are way too generous).

5. Current Ratio

This liquidity metric compares current assets to current liabilities, and helps you assess whether your company can cover its short-term obligations.

Formula: Current Assets / Current Liabilities

Why it matters: It’s the grown-up version of asking, “Can we pay the bills next month?”

6. Debt-to-Equity Ratio

This tells you how much the company is relying on borrowed funds versus owner equity to finance its operations.

Formula: Total Liabilities / Shareholders’ Equity

Why it matters: High leverage isn’t necessarily bad—but unchecked debt can sneak up like that one uncle who always borrows your tools and never returns them.

7. Days Sales Outstanding (DSO)

This metric gives you the average number of days it takes to collect payment after a sale. If DSO is creeping up, you’ve got a bottleneck somewhere.

Why it matters: High DSO = slower cash flow = sleepless nights for controllers. Lower is better, assuming you’re not harassing clients to pay early.

8. Inventory Turnover

Are you sitting on too much unsold product? This ratio helps you gauge how efficiently inventory is being managed.

Formula: COGS / Average Inventory

Why it matters: Inventory that doesn’t move ties up cash, space, and patience. High turnover? Great. Low turnover? Might be time for a clearance sale (or a stern chat with procurement).

9. Return on Assets (ROA)

This one shows how well the company uses its assets to generate profits. It’s especially helpful in asset-heavy industries like manufacturing or logistics.

Formula: Net Income / Total Assets

Why it matters: If assets are growing but ROA is declining, it’s like buying a bigger truck that hauls the same amount of cargo. Looks impressive, doesn’t deliver.

10. Budget Variance

Budget variance measures the difference between planned and actual figures for revenues and expenses.

Why it matters: It tells you how close the business is to sticking to its financial game plan. Negative variance? Dig in. Positive variance? Still dig in—it could be an accident.

The Controller’s Creed: Metrics with Meaning

Financial metrics aren’t just numbers—they’re signals. As a controller, your job isn’t just tracking them, but interpreting them, questioning them, and sometimes yelling at them (in private, of course).

Want help refining which metrics matter most for your business? At Procuris Consulting, we help finance teams get clarity, streamline reporting, and focus on what drives results—not just reports.

Need help aligning your financial strategy with operational goals? Let’s talk.