KCE

Keystone Cash Efficiency Index

Revenue is not cash. The KCE Index measures how well the business converts what it earns into what it keeps.

The KCE Index measures how effectively the business converts revenue into cash.

How effectively do you convert revenue into cash?

Many businesses grow revenue while cash tightens. The KCE Index measures the conversion of revenue into cash across working capital, collections, billing accuracy, and the timing of disbursements. It identifies where cash is trapped and what is driving working capital drag, so decisions get made with clarity instead of guesswork.

How it is scored

Working Capital
Days sales outstanding, inventory, payables
Collections
A/R aging, denial rate, days in A/R
Billing Accuracy
Clean claims, write-offs, fee schedule realization
Cash Conversion Cycle
Time from spend to collection
Reserves & Distributions
Discipline of tax reserves and owner draws

Improving cash conversion is one of the fastest ways to increase enterprise value without adding a single new client.

How this index fits the assessment

The KCE is one of five proprietary scores inside the Keystone Value Creation Assessment™. Every recommendation ties back to improving one or more of them.

Related services

Start with where you actually stand.

The Keystone Value Creation Assessment audits your last 12 to 36 months and gives you a written summary whether you engage us or not. If there is not a clear opportunity to create value, we will tell you directly.

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