Ramp Metric
Expense Management
Payment Cycle Time = Average (Payment Date - Invoice Date)
Payment cycle time measures the average duration from invoice receipt to vendor payment. It reflects accounts payable efficiency and impacts vendor relationships, early payment discounts, and working capital.
Full guide: definition, formula, and benchmarksRampExpense ManagementPayment Cycle Time
Payment cycle time measures the average duration from invoice receipt to vendor payment. It reflects accounts payable efficiency and impacts vendor relationships, early payment discounts, and working capital.
How to calculate payment cycle time
Why payment cycle time matters for Ramp users
Paying too early sacrifices working capital, while paying too late damages vendor relationships and forfeits early payment discounts. Optimising cycle time balances both considerations.
Ramp users can track payment cycle time alongside cash flow forecasts to time payments strategically, capturing discounts when cash position allows.
Understand and act on payment cycle time with KPI Tree
Sync Ramp bill payment data to your warehouse and track cycle time in KPI Tree. Build an accounts payable efficiency tree linking cycle time to discount capture and vendor satisfaction.
Assign AP ownership and set alerts when cycle time deviates from optimal ranges, whether too fast or too slow.
Get started with your Ramp data
Connect your existing warehouse where Ramp data already lands.
Our professional services team can build you turn-key AI foundations in a matter of weeks. Data warehouse on Snowflake/BigQuery, ELT with Fivetran, all modelled in dbt with a semantic layer.
Related Ramp metrics
Employee Reimbursement Time
Expense ManagementMetric Definition
Reimbursement Time = Average (Payment Date - Submission Date)
Employee reimbursement time measures the average number of days between expense submission and reimbursement payment. It reflects the efficiency of the expense review, approval, and payment process.
Duplicate Payment Detection
Expense ManagementMetric Definition
Duplicate payment detection measures the number and value of potentially duplicated transactions identified across expense submissions and vendor payments. It quantifies recoverable waste in the payments process.
Burn Rate
Expense ManagementMetric Definition
Monthly Burn Rate = Total Monthly Expenditure
Monthly burn rate is the total net cash expenditure per month, encompassing all operating expenses processed through Ramp. It is a critical metric for startups and growth-stage companies managing runway.
Total Spend Under Management
Expense ManagementMetric Definition
Spend Under Management = (Spend Through Ramp / Total Company Spend) × 100
Total spend under management measures the percentage of company expenditure that flows through Ramp and is subject to its controls, visibility, and reporting. It indicates programme coverage and control maturity.
Explore payment cycle time across integrations
All Ramp metrics
Average Transaction ValueBudget Adherence RateBudget Utilisation RateCard Activation RateCategory Spend AnalysisCompliance Violation RateDepartment Spend AnalysisDuplicate Payment DetectionEmployee Reimbursement TimeExpense Approval Cycle TimeExpense Per EmployeeMaverick Spend RateMerchant Concentration AnalysisBurn RateOut-of-Policy Spend RateReceipt Compliance RateRecurring Spend AnalysisSavings Identification RateSpend by Vendor AnalysisSpend Forecast AccuracySubscription Waste DetectionT&E Spend RatioTotal Spend Under ManagementVirtual Card Adoption RateAccounting Integration AccuracyBill Payment Cycle TimeCard Spend DistributionExpense Fraud Detection RateReconciliation TimeSpend Anomaly DetectionVendor Consolidation SavingsEmpower your team to understand and act on Ramp data
Map what drives your metrics, measure progress at any grain, prove what works statistically, and deliver personalised action plans to every team member.
