Key Takeaways

✓5 metrics only: DSI (days sales in inventory), inventory turnover, gross profit margin, operating cash flow, repeat purchase rate. Check daily in 5 minutes.

✓DSI benchmark: 30-45 days healthy. One brand: 52→67 days = $243K tied up unnecessarily. Fixed: liquidated dead SKUs, freed $243K capital.

✓Inventory turnover: 6-8x healthy. One brand: 4.3x = holding $623K (should be $380K). Improved to 7.1x, freed $243K.

✓Gross profit margin erosion: One founder didn't check for 6 months, margin 32%→26.9% (-5.1%), lost $163K gross profit on same revenue.

✓Real example: 7:47 AM dashboard check revealed 5 red flags (DSI 67, turnover 4.1x, margin 26.8%, cash -$47K, repeat 18%). Emergency action: 5 weeks cash left.

You Don't Need 50 Metrics. You Need 5.

Most CEO dashboards are information graveyards. 50 metrics. 12 charts. 8 tables. Zero clarity.

You open the dashboard, stare at it for 20 minutes, and walk away more confused than when you started. You don't know if your business is healthy or dying. You just know there are a lot of numbers.

Here's the truth: If you can't tell whether your business is healthy in 5 minutes, your dashboard is broken.

A CEO dashboard should answer one question: "Do I need to take emergency action today, or can I focus on growth?"

This blog will give you the 5 metrics that matter. Not 50. Not 20. Five.

Every morning, you'll spend 5 minutes checking these 5 metrics. If they're green, you're healthy. If any one is red, you dig in immediately. If multiple are red, it's an emergency.

Metric #1: Days Sales in Inventory (DSI)

This is the most important metric for D2C brands. It tells you how long your cash is tied up in inventory.

Formula:

DSI = (Average Inventory Value / COGS) × 365

Example:

→ Average inventory: $380,000

→ Annual COGS: $2,400,000

→ DSI = ($380,000 / $2,400,000) × 365 = 58 days

What DSI Tells You

DSI = how many days it takes to turn inventory into cash.

30-45 days

Healthy. Fast-moving inventory.

45-60 days

Acceptable. Monitor closely.

60+ days

Red flag. Cash trapped in dead inventory.

Real Example: The $243,000 Wake-Up Call

One D2C fashion brand was sitting on DSI of 67 days (should be 30-45). They didn't notice because they weren't checking daily.

Their inventory was $623,000. But at their sales velocity, it should have been $380,000. That meant $243,000 in capital was trapped in slow-moving or dead inventory.

What they discovered:

→ 23 SKUs weren't selling at all (dead weight)

→ 47 SKUs were selling slowly (1-2 units/month)

→ 12 bestsellers were constantly out of stock (lost sales)

The fix: Liquidated dead SKUs, reduced slow movers, increased bestseller inventory. DSI dropped from 67→52 days. Freed up $243,000 in working capital.

Your morning check: Look at DSI. Is it trending up (bad) or down (good)? If it's above 60 days, you have too much inventory. Time to liquidate or stop ordering slow-moving items.

Metric #2: Inventory Turnover

This tells you how many times per year you're selling through your entire inventory.

Formula:

Inventory Turnover = COGS / Average Inventory

Example:

→ Annual COGS: $2,400,000

→ Average inventory: $380,000

→ Turnover = $2,400,000 / $380,000 = 6.3x per year

What Inventory Turnover Tells You

6-8x/year

Healthy. Inventory moving fast.

4-6x/year

Acceptable. Watch for dead stock.

Below 4x/year

Red flag. Dead inventory problem.

Real Example: The 4.3x Turnover Problem

One brand had 4.3x turnover. Sounds okay, right? Wrong.

They were holding tons of dead inventory that wasn't turning. Inventory was $623,000 when it should have been $380,000.

When they eliminated dead SKUs and shifted inventory toward bestsellers, turnover improved to 7.1x. They freed up $243,000.

Your morning check: Look at turnover by category. If any category is below 4x, investigate why. Ask your head of product: "This category is dead. Why are we still ordering it?" Fast answer: Liquidate or discontinue. Slow answer: You're wasting capital.

Metric #3: Gross Profit Margin

This is your unit economics truth-teller.

Formula:

Gross Profit Margin = (Revenue - COGS) / Revenue

Example:

→ Sell a $100 item

→ COGS is $42

→ Margin = ($100-42) / 100 = 58%

Why This Matters

This metric tells you how much of every dollar is actually profit (before operating expenses).

Most D2C brands think in terms of "revenue." Wrong. Think in terms of margin dollars.

Example: The 4-Point Margin Improvement

One fashion brand does $3.2M in annual revenue. Sounds big. But if margin is only 28%, they're making $896,000 in gross profit.

Out of that $896,000, they pay salaries, rent, marketing, payment processing, logistics. If those costs eat $720,000 per year, they're left with $176,000 in operating profit. That's 5.5% net margin on $3.2M revenue.

Now imagine they improve margin from 28% to 32% (through slightly higher prices + lower COGS).

→ New gross profit: $1.024M

→ Operating profit: $304,000

That's a 73% increase in bottom-line profit from a 4-percentage-point margin improvement.

Real Example: The Silent Margin Erosion

One founder didn't check margin for 6 months. Logistics costs had quietly increased (+2%), vendor prices had risen (+1.3%), and currency fluctuation hurt imported goods (-1.8%).

Total margin erosion: -5.1%

Their margin went from 32% to 26.9% without anyone noticing.

When they finally checked, they'd lost $163,000 in gross profit on the same revenue. All because they didn't monitor daily.

Your morning check: Is margin staying stable, or trending down? If it's trending down, you have three levers:

Raise prices (but risks losing customers)

Lower COGS (negotiate with vendors, reduce packaging)

Improve product mix (sell more high-margin items, less low-margin)

Metric #4: Operating Cash Flow

This is the difference between "revenue" and "actual cash in the bank."

Revenue is an accounting concept. Cash flow is reality.

You can have $4.2M in revenue and be broke. Here's how:

Example: The $4.2M Revenue Trap

→ You sell inventory: +$4.2M revenue (recognized)

→ You haven't collected customer payments yet: -$847,000 (if customers have 7-day payment terms)

→ You haven't paid vendors yet: -$1.2M (if vendors have 45-day terms)

→ You have $423,000 in unsold inventory: -$423,000 in cash tied up

Real cash position: +$4.2M - $847k - $1.2M - $423k = +$1.73M actual cash

But if some customers return items and you refund them: -$143,000.

Real cash now: +$1.587M

Operating cash flow = Net income + depreciation - changes in working capital.

(It's more complex, but the point: Cash ≠ Revenue.)

Why This Matters

Cash flow tells you whether you can pay salaries, vendors, and taxes next month.

One founder was told they had positive operating cash flow. "We're healthy!" they thought.

But operational cash flow was +$47,000 per month. Salaries were $52,000/month. Rent, utilities, and other fixed costs: $18,000.

They were burning $23,000 per month. They had 2 months of runway before cash ran out. They didn't know it.

Your morning check: Check operating cash flow. Is it positive or negative? If negative, how many months of runway do you have? If you have less than 3 months, it's time to cut costs or reduce inventory aggressively.

Most founders wait until they have 1 month of runway to panic. Wrong. By then, it's too late.

Metric #5: Repeat Purchase Rate

This is the long-term health indicator.

Formula:

Repeat Purchase Rate = (Customers who purchased in month N and also in month N+1) / (Total customers in month N)

Benchmark: 25%+ is healthy

Example:

→ You had 400 customers in November

→ In December, 127 of them bought again (plus 300 new customers)

→ Repeat rate = 127/400 = 31.75%

That's solid.

Why This Matters

Repeat customers are worth 5x to 10x more than one-time customers.

The Math:

One-time customer: Costs you $40 to acquire (CPA) and generates $85 in margin. Net: +$45.

Repeat customer: Was acquired for $40 and generates $85 in margin every 2-3 months. Over a 3-year lifetime, that's $1,020 in total margin. Net lifetime value: +$980.

But if repeat rate is only 8% (meaning 92% of customers never come back), your business is a treadmill. You're constantly acquiring new customers, constantly burning money, constantly running at a loss.

Real Example: The 12% Repeat Rate Problem

One D2C beauty brand had a repeat rate of only 12%. They had $4.2M in annual revenue but were burning $847,000 per year because:

→ CPA was $47

→ Revenue per customer was $126

→ Gross margin per customer: $86

→ Repeat rate: 12% (meaning most customers never buy again)

When they improved repeat rate to 26% (through better product, better follow-up, loyalty programs), their unit economics flipped.

Same $4.2M revenue, but now they were profitable.

Your morning check: What's your repeat purchase rate trending? Is it stable? Growing? If it's dropping, something is wrong with product quality or customer experience. This is the hardest metric to move, so it's your leading indicator.

Putting It Together: The Real Morning Routine

A proper CEO dashboard shows these 5 metrics in real-time, updated every 1-2 hours.

Every morning, you spend 5 minutes reviewing:

DSI: Are we freeing up or tying up working capital? (Trend: up or down?)

Inventory Turnover: Are fast-moving items really moving? Slow items getting liquidated? (Overall health)

Gross Profit Margin: Is margin stable or eroding? (Unit economics)

Operating Cash Flow: Do we have enough cash runway? (Survival question)

Repeat Purchase Rate: Are customers coming back or is this a one-time sale? (Growth sustainability)

If any of these 5 is trending in a bad direction, it's a signal to dig deeper that day.

Example Morning Routine

✓ Good Day (7:47 AM)

→ DSI: 48 days (down from 52 yesterday) ✓ Good

→ Inventory Turnover: 6.3x (stable) ✓ Good

→ Gross Profit Margin: 31.2% (stable) ✓ Good

→ Operating Cash Flow: +$18,300 this month ✓ Good (3.6 months runway)

→ Repeat Purchase Rate: 22% (down from 24% last month) ⚠️ Watch this

Action: Investigate why repeat rate is dropping. Maybe email campaign underperforming? Maybe product quality issue? Dig in.

⚠️ EMERGENCY (7:47 AM)

→ DSI: 67 days (up from 52 five days ago) 🚨 RED FLAG

→ Inventory Turnover: 4.1x (down from 6.2x last month) 🚨 RED FLAG

→ Gross Profit Margin: 26.8% (down from 31.2% last month) 🚨 RED FLAG

→ Operating Cash Flow: -$47,200 this month 🚨 RED FLAG (1.2 months runway)

→ Repeat Purchase Rate: 18% (down from 24% last month) 🚨 RED FLAG

Action: EMERGENCY. Multiple systems failing simultaneously. Call team meeting. We need to cut spending and liquidate slow-moving inventory today. We have 5 weeks of cash left.

The Tech Stack That Makes This Real

You can't do this with Excel. You need:

Odoo ERP (centralized source of truth)

Real-time dashboard configured to pull from Odoo every 1-2 hours

Automated alerts (if DSI crosses threshold, send SMS)

Channel-wide integration (Shopify, Myntra, Amazon data flowing into Odoo automatically)

Example: Slack Morning Notification

One brand we set up has a Slack notification every morning at 7:30 AM with a 10-second summary:

"DSI: 46 days (stable) | Turnover: 6.8x (stable) | Margin: 32% (stable) | Cash runway: 4.2mo (stable) | Repeat: 26% (stable)"

→ Green lights across the board = Founder knows it's a normal day. They can check email.

→ Red light on any metric = Founder digs in immediately.

Why Most Founders Fail Here

Most founders don't have real-time dashboards because:

→

Excel dashboards are manual (too slow to update)

→

Old ERP systems report monthly or quarterly (too slow for daily decisions)

→

Multiple systems don't talk to each other (data is fragmented)

By the time data appears in a monthly report, the damage is done.

One brand waited for their monthly accounting close (15 days after month-end) to discover they'd been cash-flow negative for 6 weeks.

They had to get an emergency $250,000 line of credit at 18% interest.

If they'd had real-time visibility, they would have cut spending in week 2 of the problem. Emergency line of credit: avoided.

Bottom Line

You don't need a dashboard with 50 metrics. You need 5 metrics that tell you the health of your business in 5 minutes.

If your CEO dashboard isn't real-time, you're flying blind.

Stop Making Decisions on 7-Day-Old Data

Most D2C founders discover they've been making decisions on data that's 4-7 days old. By then, millions in working capital damage has already occurred. Your dashboard should tell you that story in real-time, not retroactively.

Free 15-Minute Dashboard Audit

We'll analyze whether your current data infrastructure is set up for real-time decisions, identify the gaps that are costing you visibility, and show you how to build a CEO dashboard that takes 5 minutes to review every morning.

FAQ: CEO Dashboard Questions We Get Every Week

Don't I need more metrics to get the full picture?

No. More metrics = more noise. Analysts need detail. CEOs need signal. These 5 metrics are your signal. Everything else is noise. If you're a VC investor, you care about 50 metrics. If you're running a $3M brand, you care about 5.

How often should I check the dashboard?

Every morning, 5 minutes. Weekly deep dives on whichever metric is trending wrong. Monthly strategy reviews. Don't check it every hour—you'll drive yourself crazy chasing noise.

Can I use Shopify's native dashboard for this?

No. Shopify dashboards show Shopify data only. You need multi-channel integration (Shopify + Myntra + Amazon + own website + email + ad platforms). Only a unified ERP can do this.

What if one metric is red but others are green?

Investigate. One red signal is a problem you can solve. Multiple red signals = systemic failure requiring emergency action.

How do I set up real-time integration?

Through an ERP like Odoo with API integrations to your sales channels. Then overlay a BI tool (Metabase, Superset, Tableau) to create the dashboard. Cost: $2,000-4,000 to set up, then $300-500/month to maintain.

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