Key Performance Indicators
8 articles
Contractor Days Billed
This KPI multiplies the number of contractors on assignment by the days in a period and is central to shortterm forecasting. A growing contractordays curve sign…
Fill Rate
Fill rate measures the percentage of job requisitions successfully filled. Sub60 % fill rates may indicate overreliance on key accounts or lack of candidate sup…
Customer Payment Speed (DSO)
Customer payment speed, or Days Sales Outstanding (DSO), calculates how quickly invoices convert to cash (trade debtors ÷ revenue × 365). Long payment periods s…
Creditor Days
Creditor days (trade creditors ÷ cost of sales × 365) show how long the business takes to pay suppliersincluding umbrella or PAYE payroll providers. A widening …
Working Capital
Working capital equals current assets minus current liabilities (excluding debt). In staffing, weekly or fortnightly contractor payroll means workingcapital req…
Cash Conversion Cycle
The cash conversion cycle combines debtor days, creditor days and workinprogress to show how long cash is tied up from paying contractors to receiving client pa…
Free Cash Flow
Free cash flow (FCF) is the cash generated after financing workingcapital movements and capital expenditure. For assetlight recruiters, capex is minimal, so FCF…
Net Debt
Net debt equals interestbearing debt minus cash. The lower the netdebt figure, the higher the equity value at a given enterprise value (EV). A "cashrich, debtfr…