It’s tempting to assume that more data equals better planning. But for financial planning and analysis (FP&A) teams, value doesn’t lie in volume – it lies in focus. Knowing which metrics to watch, and why, is what separates a reactive finance function from a strategic one.

In today’s fast-moving environment, FP&A professionals are being asked to step up as partners to the business – interpreting numbers, anticipating risks, and helping to shape decisions at every level. That means keeping a tight grip on a core set of key performance indicators (KPIs) and metrics that reflect not just past performance, but future potential.

Here are ten of the most critical metrics and KPIs that every FP&A team should monitor and how modern FP&A software can help track them more effectively.

1. Revenue growth rate

Tracking revenue growth over time – whether month-on-month, quarter-on-quarter, or year-on-year – is one of the clearest indicators of business momentum. It helps FP&A teams assess whether strategic initiatives are paying off, and whether market conditions are shifting.

More than just a raw number, revenue growth should be analysed across segments, geographies, and products to uncover underlying trends. With robust FP&A tools, this can be modelled dynamically, supporting scenario planning and forecasting. 

2. Gross profit margin

Gross profit margin tells you how efficiently a company produces and delivers its products or services. It’s a foundational metric for understanding business viability.

Tracking this margin over time – and comparing it against benchmarks or industry peers – can surface warning signs of rising input costs, operational inefficiencies, or pricing pressures. FP&A software allows you to visualise these shifts clearly and build variance reports that highlight the drivers behind changes. 

3. Operating expenses (OpEx) ratio

The operating expense ratio, typically expressed as OpEx as a percentage of revenue, helps FP&A professionals monitor cost discipline.

High or growing OpEx ratios might indicate inefficiencies, especially if revenue is flat. But context is key – FP&A software can help break down costs by department or function, helping to identify where investment is strategic and where savings can be made.

4. EBITDA and EBITDA margin

Earnings before interest, tax, depreciation, and amortisation (EBITDA) is often used as a proxy for operating cash flow, especially in valuations or performance benchmarking. The EBITDA margin (EBITDA as a percentage of revenue) tells you how scalable and profitable the business model is.

These metrics are most powerful when tracked consistently over time and across scenarios – something FP&A solutions like Apliqo’s make seamless, thanks to built-in modelling and dashboard capabilities.

5. Cash conversion cycle

The cash conversion cycle (CCC) measures how quickly a company turns its investments in inventory and other resources into cash from sales. It combines three sub-metrics: days inventory outstanding (DIO), days sales outstanding (DSO), and days payable outstanding (DPO).

A shorter cycle means better liquidity and operational efficiency. FP&A teams should monitor changes in the CCC closely, especially in industries where working capital is tight or volatile. Automated reporting and trend analysis tools can reveal bottlenecks before they affect cash flow.

6. Forecast accuracy

It’s not just the numbers you report – it’s how well your predictions hold up over time. Forecast accuracy is a meta-metric: a KPI about your KPIs.

By comparing actuals to forecasts across revenue, costs, and key assumptions, FP&A teams can assess the reliability of their models and improve over time. FP&A platforms can track forecast accuracy automatically and feed learnings back into rolling forecasts, enabling faster, data-driven iterations. 

7. Scenario variance

As volatility becomes the norm, scenario planning has become a core capability for modern FP&A. But it’s not enough to build scenarios – you need to track how reality compares to the assumptions within them.

Monitoring scenario variance helps finance teams understand the impact of strategic choices and external events. It also reinforces agility: when combined with driver-based planning in FP&A tools, it enables teams to pivot quickly in response to new information.

8. Customer acquisition cost (CAC) and lifetime value (LTV)

CAC and LTV are traditionally marketing metrics, but FP&A teams should care deeply about them – particularly in SaaS and subscription-based businesses. Together, they describe the efficiency of customer investment and the long-term value generated.

Tracking these figures over time and across segments can inform everything from budget allocation to pricing strategy. With integrated FP&A software, data from CRM and finance systems can be brought together to provide a full picture of customer economics.

9. Headcount and productivity metrics

Labour is one of the largest expenses for many businesses, making headcount metrics critical for planning. FP&A teams should monitor not only total headcount and cost per employee, but also output or revenue per employee as a measure of productivity.

Integrating HR data into the planning process ensures that workforce decisions – like hiring freezes, reorganisations, or expansion – are grounded in financial reality. Many FP&A platforms support workforce planning modules that align HR, finance, and business needs in a single view.

10. Capital expenditure (CapEx) vs. depreciation

Capital investment decisions shape a company’s future, but their effects take years to materialise. That’s why it’s vital to monitor both CapEx spend and its relationship to depreciation over time.

Tracking this balance helps FP&A teams understand whether the company is investing appropriately in growth, or letting assets run down. It also supports planning for large expenditures and understanding their impact on long-term profitability.

Tracking the right numbers, in the right way

Every business is different—but the metrics above form a solid foundation for most FP&A teams. The key is not just tracking them individually, but understanding how they relate to one another in a living financial model. That requires integration, flexibility, and the ability to move from high-level dashboards to granular detail in a few clicks.

Modern FP&A solutions like Apliqo’s help finance teams do exactly that. Built on IBM Planning Analytics / TM1, Apliqo empowers professionals to link metrics to strategy, turn data into action, and play a proactive role in shaping business success. To find out how your organisation can benefit from this, be sure to get in touch today.