Essential Treasury KPIs: How to Track and Automate Metrics for Success
This article is written by our partner, Nilus If you’re leading treasury or finance at a growing company, chances are you’ve asked yourself: “Why are our forecasts always off?” “Where exactly is our cash today?” “How do we prove we’re managing risk, not just tracking it?” These aren’t just workflow hiccups, they’re strategic blind spots. And the root cause is often the same: poor visibility into the right metrics. Treasury KPIs are the instruments that transform financial uncertainty into clarity. When chosen thoughtfully and tracked consistently, they help you avoid liquidity shocks, strengthen decision-making, and communicate performance clearly across the business. In this guide, we’ll walk through the essential KPIs every treasury team should monitor, how to tailor them to your business, and how automation tools like Nilus can make real-time, accurate tracking not only possible but painless. Key Takeaways Why Treasury KPIs Are Critical for Confident Decision-Making In today’s fast-paced financial environment, treasury teams must respond to volatility, regulatory shifts, and real-time data demands across regions and systems. The ability to track the right KPIs isn’t just helpful, it’s essential for staying in control. Think of KPIs as your financial radar: they help you anticipate issues before they escalate, whether it’s a looming liquidity crunch, unexpected FX exposure, or inaccurate cash forecasts. Without them, decision-making becomes reactive, delayed, and risk-prone. That’s where automated, AI-powered systems like Nilus come in. By replacing spreadsheets with dynamic dashboards, treasury teams can monitor metrics in real time, uncover trends early, and move from firefighting to forward planning. What Are Treasury KPIs and Why Do They Matter? Treasury KPIs are quantifiable metrics used to evaluate the performance, risk posture, and strategic effectiveness of a company’s treasury function. At their core, treasury KPIs answer four fundamental questions: These KPIs span multiple categories: In practice, treasury KPIs also serve as the connective tissue between finance operations and executive decision-making. They help CFOs and treasurers explain financial performance to boards, secure favorable financing terms, or make the case for capital investments. And in high-stakes moments, like a sudden drop in revenue or a market shock, they become the first tools decision-makers reach for. Without treasury KPIs, financial leaders are flying blind. With them, they’re equipped with precision navigation for today’s complex and fast-paced business terrain. So let’s dive into the exact indicators you should be tracking. Treasury KPIs Every Finance Team Should Track Cash & Liquidity Management KPIs Days Cash on HandThis measures how many days your business can continue operating with the cash it currently has. It’s like checking your fuel tank before a road trip. Too low, and you’re running on fumes; too high, and you may be hoarding idle cash that could be invested more productively. Global Target Balance vs. ActualThis metric tells you if you’re optimizing liquidity across regions. If your target is $50M in APAC and you’re sitting on $100M, you’re not putting that money to work. If it’s only $10M, you’re at risk. Daily Cash Balance Variance vs ForecastForecasts are your financial weather report. This KPI shows you how close your predictions are to actual outcomes. Regular misses signal deeper issues, perhaps flawed assumptions or delayed data inputs. Non-Interest-Bearing Cash %Cash sitting in non-interest-bearing accounts is like a car idling in neutral for hours on end. You’re burning opportunity. This KPI helps you identify cash that could be better allocated toward high-yield accounts or short-term investments. Investment & Debt KPIs Debt-to-Equity RatioThis ratio reflects the proportion of company financing coming from debt versus equity. A higher ratio means more leverage, which might amplify returns but also increases risk. Cost of Debt (Pre-/Post-Tax)Understanding your borrowing cost helps determine whether financing is being used efficiently. Pre-tax and post-tax views offer insight into how tax structures affect your actual cost of capital. Debt Service Coverage Ratio (DSCR)This indicates your ability to service debt using operating income. A DSCR under 1.0 means you’re not generating enough to cover obligations, a red flag for lenders and credit analysts. Weighted Average Cost of Capital (WACC)WACC is the average rate a company expects to pay to finance its assets. It’s a critical benchmark: if your investment returns aren’t exceeding your WACC, you’re not creating value. Risk & Operational Resilience KPIs Interest Rate Risk ExposureMeasures sensitivity to changes in interest rates. If your debt portfolio is heavily floating-rate, a rate hike could spike your financing costs. Currency RiskCompanies operating across borders face FX volatility. This KPI captures your exposure and helps determine if hedging strategies are sufficient. Liquidity Risk IndexThis tracks your ability to meet short-term obligations without disrupting operations. Think of it as a stress test: what happens if customer payments are delayed or credit lines tighten? Cash Flow Forecast Accuracy (%)A core operational KPI. If your forecasts are consistently off, it signals weaknesses in process or data quality. High accuracy builds confidence in treasury’s strategic value. How to Choose the Right KPIs for Your Treasury Department Choosing the right treasury KPIs is less about picking from a universal checklist and more about strategic alignment. Like tailoring a suit, the ideal KPI framework fits your organization’s structure, industry, and goals. Here are key principles to guide your selection: 1. Start With Strategic Objectives Think of KPIs as tools to measure progress toward a goal. If your treasury strategy emphasizes liquidity optimization, focus on KPIs like Days Cash on Hand or Net Cash Flow. If debt reduction is the priority, metrics like DSCR and Cost of Debt should take center stage. 2. Match Metrics to Maturity A startup scaling rapidly will need different KPIs than a mature enterprise with global operations. Early-stage companies may track burn rate or short-term cash runway, while more established firms benefit from WACC, FX risk exposure, and capital allocation efficiency. 3. Factor in Operational Complexity Do you operate across multiple currencies or regions? You’ll need to include currency risk and regional cash position metrics. Is your company highly seasonal? Then forecast variance and scenario planning KPIs become more important. 4. Think in Time Horizons Short-term KPIs…
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The Stablecoin Risk Nobody Talks About
Inspired by the Bank Policy Institute’s November 2025 analysis Stablecoins were meant to make payments faster, cheaper, and smoother. A digital token pegged to the U.S. dollar—how complicated could that be? But if you look at what the Bank Policy Institute (BPI) and U.S. regulators are saying lately, the so-called “safe” coins might be anything but. For treasurers, that matters. Because stablecoins aren’t just a crypto curiosity anymore—they’re creeping into settlement infrastructure, fintech rails, and bank-tech partnerships. The question isn’t if they touch your world, but how much risk they drag along when they do. The Stable Promise, the Fragile Reality The U.S. “GENIUS Act” (yes, someone actually called it that) is supposed to give stablecoins a legal and supervisory framework. It requires issuers to fully back tokens with high-quality liquid assets and redeem them on demand. On paper, that looks like the kind of regulation treasurers could live with. But paper isn’t balance-sheet reality. Even fully backed stablecoins can stumble if their reserves lose value or redemptions get messy. In other words, they can “break the buck” just like a money-market fund. The BPI highlights that risk clearly: the peg is a promise, not a guarantee. DeFi: The Wild West of Liquidity Here’s where it gets more interesting. Many stablecoins end up circulating on decentralised finance (DeFi) platforms—an unregulated playground that looks like a banking system with none of the adult supervision. Stablecoins are borrowed, leveraged, re-lent, and rehypothecated across multiple chains. When that loop breaks, liquidity disappears overnight. The risk doesn’t stay in DeFi—it seeps into payment networks, custodians, and even fintechs connecting to corporate treasuries. It’s a classic contagion problem in a new wrapper. Why Treasurers Should Care Most treasurers won’t touch stablecoins directly. But here’s the catch: your payment provider, your ERP, or your fintech partner might. And that means you’re exposed whether you like it or not. Think about it this way: You don’t need to be holding stablecoins to get splashed by their problems. What Regulators Are Worried About The BPI’s latest note reads like a polite but firm warning to lawmakers: the GENIUS Act could backfire if implemented too loosely. Their key points: Translation: regulators see what’s coming, and it looks suspiciously like a parallel financial system. What This Means for Corporate Treasury For treasurers, this is not about betting on blockchain. It’s about protecting liquidity and ensuring continuity in a financial system that’s quietly changing shape. Final Thought Stablecoins could still change how money moves—24/7, borderless, programmable. The opportunity is real, but so is the need for discipline. For treasurers, the advantage goes to those who prepare before the market standard shifts. The future of payments might not belong to whoever adopts stablecoins first, but to whoever understands their risks best. Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.