If you want to grow your business with confidence, you need to understand your cash flow, and that means going beyond just checking your bank balance. In this episode, Danielle Hayden, your go-to financial partner for all things bookkeeping, breaks down the 5 essential cash KPIs every CEO should track and explains how to use them to make smarter decisions for your business.

Key Takeaways:

• Cash Flow is the Lifeline of Your Business: Without clarity on cash flow, you're reacting instead of leading—and that's the fastest path to burnout or shutdown.

• KPIs Turn Insight Into Action: Knowing your bank balance isn't enough; these 5 KPIs give you the clarity you need to plan, invest, and scale sustainably.

• Healthy Ratios = Peace of Mind: Metrics like the quick ratio and current ratio tell you whether you can handle surprises without panic.

• Free Cash Flow Is Your Decision-Making Tool: It reveals whether you can hire, invest, or pay yourself more without putting your business at risk.

• Cash Reserves Buy Confidence: Having 1-3 months of operating expenses in the bank gives you the power to make bold moves without sleepless nights.

The 5 CEO Cash KPIs We Cover:

1. Free Cash Flow – What's really left after running and growing your business?

2. Operating Cash Flow to Liabilities Ratio – Can your business cover what it owes?

3. Current Ratio – Do you have enough short-term assets to pay your bills?

4. Quick Ratio – If you had to pay everything today, could you?

5. Cash On Hand – How long can you keep the lights on without new revenue?

Topics Discussed:

(00:00 – 01:14) Why Cash Flow Makes or Breaks Your Business

(01:15 – 02:16) Why KPIs Matter Beyond the Cash Flow Statement

(02:17 – 03:07) Free Cash Flow: What It Is and Why It's Critical

(03:07 – 05:02) Comparing Operating Cash Flow to Liabilities Ratio

(05:03 – 06:14) Current Ratio: What It Tells You and How to Calculate It

(06:14 – 07:26) Quick Ratio: What It Tells You and How to Calculate It

(07:27 – 08:28) Cash On Hand: Your Ultimate Safety Net and Ability to Investment

(08:35 – 09:42) Recap of the 5 KPIs to Track as a CEO

(09:44 – 10:27) Outro: Like, share, and subscribe!

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