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KPIs

Overview

Finuncle provides a powerful set of financial fundamentals that serve as building blocks for creating custom Key Performance Indicators (KPIs). This reference guide documents all available fundamentals and demonstrates how to combine them using mathematical operations to build meaningful financial metrics.

Available Fundamentals

Asset Fundamentals

TotalAsset

Description: The sum of all your assets across all categories
Type: Currency value
Use Cases: Net worth calculations, asset allocation ratios, financial independence metrics
Example: Track total wealth accumulation over time

TotalCash

Description: Total cash holdings across all tracked locations
Type: Currency value
Use Cases: Liquidity analysis, emergency fund tracking, cash allocation percentage
Example: TotalCash / TotalAsset * 100 for cash allocation percentage

TotalBankAccounts

Description: Combined balance of all connected bank accounts
Type: Currency value
Use Cases: Liquid asset tracking, available funds analysis
Example: TotalBankAccounts + TotalCash for total liquid assets

AbsInvestment

Description: Absolute value of all investments
Type: Currency value
Use Cases: Investment allocation, portfolio size tracking
Example: AbsInvestment / TotalAsset * 100 for investment allocation percentage

Precious Metals Fundamentals

TotalGold

Description: Total value of gold holdings/investments
Type: Currency value
Use Cases: Precious metals allocation, hedge tracking
Example: Part of alternative investment calculations

TotalSilver

Description: Total value of silver holdings/investments
Type: Currency value
Use Cases: Precious metals diversification
Example: Combined with gold for total precious metals exposure

TotalPlatinum

Description: Total value of platinum holdings/investments
Type: Currency value
Use Cases: Alternative asset tracking
Example: (TotalGold + TotalSilver + TotalPlatinum) / TotalAsset * 100 for precious metals percentage

Performance Fundamentals

ReturnOnAssets

Description: Percentage return generated on total assets
Type: Percentage
Use Cases: Investment efficiency, performance tracking
Example: Direct use or ReturnOnAssets * TotalAsset for absolute returns

AbsRoA

Description: Absolute Return on Assets (currency value)
Type: Currency value
Use Cases: Actual return amount tracking, income generation analysis
Example: AbsRoA / TotalExpense to see if returns cover expenses

Liability Fundamentals

TotalLiability

Description: Sum of all debts and financial obligations
Type: Currency value
Use Cases: Debt tracking, leverage ratios, net worth calculation
Example: TotalLiability / TotalAsset * 100 for debt-to-asset ratio

AbsLiabilityInterest

Description: Total interest amount paid on all liabilities
Type: Currency value
Use Cases: Debt cost analysis, interest burden tracking
Example: AbsLiabilityInterest / TotalLiability * 100 for effective interest rate

LiabilityInterest

Description: Average interest rate across liabilities
Type: Percentage
Use Cases: Debt cost monitoring, refinancing decisions
Example: Compare with ReturnOnAssets to see if debt is productive

Risk Fundamentals

TotalNpa

Description: Total Non-Performing Assets value
Type: Currency value
Use Cases: Asset quality monitoring, risk assessment
Example: TotalNpa / TotalAsset * 100 for NPA percentage

NpaPct

Description: Non-Performing Assets as a percentage
Type: Percentage
Use Cases: Direct asset quality indicator
Example: Use directly or set thresholds for risk alerts

Other Fundamentals

TotalLent

Description: Total amount lent to others
Type: Currency value
Use Cases: Credit exposure tracking, receivables monitoring
Example: TotalLent / TotalAsset * 100 for lending exposure

TotalExpense

Description: Total tracked expenses
Type: Currency value
Use Cases: Burn rate analysis, budget tracking, FI calculations
Example: TotalCash / TotalExpense for months of expenses covered

Mathematical Operations

Basic Operations

  • Addition (+): Combine values, e.g., TotalCash + TotalBankAccounts
  • Subtraction (-): Calculate differences, e.g., TotalAsset - TotalLiability
  • Multiplication (*): Scale values, e.g., ReturnOnAssets * TotalAsset
  • Division (/): Calculate ratios, e.g., TotalLiability / TotalAsset

Advanced Operations

  • Parentheses (): Control order of operations, e.g., (TotalAsset - TotalLiability) / TotalAsset
  • Percentages: Multiply by 100, e.g., TotalCash / TotalAsset * 100
  • Complex Ratios: Combine multiple operations, e.g., (AbsRoA - AbsLiabilityInterest) / TotalAsset

Pre-Built KPI Templates

Financial Health KPIs

Net Worth

Formula: TotalAsset - TotalLiability
Purpose: Track actual wealth (assets minus debts)
Target Example: Increase by 10% annually

Leverage Ratio

Formula: TotalLiability / TotalAsset
Purpose: Measure financial leverage
Healthy Range: Below 0.5 (50%)

Quick Ratio

Formula: (TotalCash + TotalBankAccounts) / TotalLiability
Purpose: Ability to pay off debts with liquid assets
Healthy Range: Above 1.0

Liquidity KPIs

Emergency Fund Months

Formula: (TotalCash + TotalBankAccounts) / TotalExpense
Purpose: Months of expenses covered by liquid assets
Target Example: 6-12 months

Cash Allocation

Formula: TotalCash / TotalAsset * 100
Purpose: Percentage of portfolio in cash
Typical Range: 5-20%

Liquidity Coverage Ratio

Formula: (TotalCash + TotalBankAccounts) / (TotalExpense + AbsLiabilityInterest)
Purpose: Ability to cover expenses and debt payments
Target: Above 3 months

Investment KPIs

Investment Intensity

Formula: AbsInvestment / TotalAsset * 100
Purpose: Percentage of assets actively invested
Target Example: 60-80%

Return Efficiency

Formula: AbsRoA / AbsInvestment
Purpose: Return generated per unit invested
Use: Compare with market benchmarks

Precious Metals Allocation

Formula: (TotalGold + TotalSilver + TotalPlatinum) / TotalAsset * 100
Purpose: Portfolio allocation to precious metals
Typical Range: 5-15%

Risk Management KPIs

Asset Quality Score

Formula: (TotalAsset - TotalNpa - TotalLent) / TotalAsset * 100
Purpose: Percentage of performing assets
Target: Above 95%

Debt Service Coverage

Formula: (AbsRoA + TotalCash) / AbsLiabilityInterest
Purpose: Ability to service debt from returns and cash
Healthy Range: Above 2.0

Risk Exposure Index

Formula: (TotalNpa + TotalLent + TotalLiability) / TotalAsset
Purpose: Total risk exposure relative to assets
Target: Below 0.3 (30%)

Growth KPIs

Financial Independence Ratio

Formula: AbsRoA / TotalExpense
Purpose: How much expenses are covered by returns
Target: 1.0 for financial independence

Wealth Accumulation Rate

Formula: (TotalAsset - TotalLiability) / TotalExpense
Purpose: Years of expenses saved as net worth
Use: Track progress over time

Productive Asset Ratio

Formula: (AbsInvestment + TotalBankAccounts) / (TotalAsset - TotalCash)
Purpose: Percentage of non-cash assets that are productive
Target: Above 80%

Building Custom KPIs

Step 1: Define Your Objective

What financial aspect do you want to measure? Examples:

  • Safety: How risky is my financial position?
  • Growth: How fast is my wealth growing?
  • Efficiency: How well are my assets performing?
  • Independence: How close am I to financial freedom?

Step 2: Select Relevant Fundamentals

Choose fundamentals that relate to your objective:

  • For safety: Use TotalLiability, TotalNpa, NpaPct
  • For growth: Use TotalAsset, AbsRoA, ReturnOnAssets
  • For efficiency: Use ratios of returns to assets or expenses
  • For independence: Compare income to expenses

Step 3: Design Your Formula

Combine fundamentals logically:

  • Ratios: Divide related values (e.g., debt/assets)
  • Differences: Subtract for net calculations (e.g., assets - liabilities)
  • Weighted Metrics: Multiply for scaled values (e.g., return% * assets)
  • Composite Scores: Combine multiple factors

Step 4: Set Meaningful Targets

Define what success looks like:

  • Research industry benchmarks
  • Consider your personal situation
  • Set both minimum thresholds and stretch goals
  • Create time-bound milestones

Complex KPI Examples

Comprehensive Financial Health Score

Formula: ((TotalAsset - TotalLiability) / TotalAsset * 40) + 
         ((TotalCash + TotalBankAccounts) / TotalExpense * 5) + 
         ((100 - NpaPct) * 0.2)
         
Purpose: Single score combining net worth, liquidity, and asset quality
Range: 0-100, higher is better

Debt Productivity Index

Formula: (AbsRoA - AbsLiabilityInterest) / TotalLiability

Purpose: Net return generated per unit of debt
Interpretation: Positive = debt is productive, Negative = debt is costly

Financial Stress Test

Formula: (TotalCash + TotalBankAccounts - TotalLiability) / TotalExpense

Purpose: Months you could survive after paying all debts
Use: Emergency preparedness planning

Investment Diversification Score

Formula: (AbsInvestment + TotalGold + TotalSilver + TotalPlatinum) / 
         (TotalAsset - TotalCash - TotalBankAccounts) * 100

Purpose: How diversified are non-liquid assets
Target: 80-95%

Best Practices

Formula Design

  • Keep formulas simple enough to understand at a glance
  • Use parentheses to make order of operations clear
  • Avoid division by values that could be zero
  • Test formulas with current values before saving

Naming Conventions

  • Use descriptive names that explain what the KPI measures
  • Include the unit in the name (%, ratio, months, etc.)
  • Consider prefixing with category (Risk_, Growth_, etc.)

Target Setting

  • Base targets on research and personal circumstances
  • Set both floor (minimum acceptable) and ceiling (goal) values
  • Review and adjust targets quarterly or when life changes

Monitoring Strategy

Common Pitfalls to Avoid

  1. Over-Complexity: Don't create formulas you can't explain
  2. Zero Division: Always check if denominators can be zero
  3. Meaningless Metrics: Ensure each KPI drives actionable decisions
  4. Static Targets: Adjust targets as your situation evolves
  5. Isolation: Look at KPIs together, not in isolation

Quick Reference Table

Fundamental Type Category Common Uses
TotalAsset Currency Assets Net worth, ratios
TotalCash Currency Assets Liquidity analysis
TotalBankAccounts Currency Assets Available funds
AbsInvestment Currency Assets Portfolio tracking
TotalGold Currency Metals Alternative assets
TotalSilver Currency Metals Diversification
TotalPlatinum Currency Metals Precious metals
ReturnOnAssets Percentage Performance Efficiency
AbsRoA Currency Performance Income tracking
TotalLiability Currency Liabilities Debt management
AbsLiabilityInterest Currency Liabilities Cost of debt
LiabilityInterest Percentage Liabilities Interest rates
TotalNpa Currency Risk Asset quality
NpaPct Percentage Risk Risk metrics
TotalLent Currency Other Credit exposure
TotalExpense Currency Other Spending analysis

Next Steps

  1. Start with 3-5 basic KPIs from the templates
  2. Customize formulas based on your specific needs
  3. Set realistic targets and monitoring frequencies
  4. Gradually add more sophisticated metrics as needed
  5. Use scenario analysis to test different strategies

Remember: The best KPIs are those that help you make better financial decisions. Focus on metrics that matter for your specific financial journey.

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