D. Brown Management - Project Cash Metric for Work-in-Progress (WIP)

Project Cash Metric for Work-in-Progress (WIP)

Do your projects burn or build cash? The biggest cash flow variable for a contractor is their projects.

D. Brown Management

February 19, 2019 1 minute read

cash flow

Cash flow is a critical scoreboard metric for contractors.

Scoreboard: Project Cash Metrics for Work-In-Progress (WIP)

While there are other factors that can impact cash flow at the company level, such as debt service or lack of overall company profitability, the metric track is still typically at the project level.

This simple metric lets you know if you are either:

Financing the projects to some degree if the score is less than 1, or
In a positive cash flow position if the score is greater than 1

This metric is explained in more detail here.

Where is your current cash flow?
Where has it been trending?

18 tips for improving your cash flow.

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