Net Working Capital – Why it Matters & How to Get it Right
Net working capital is one of the simplest ways to check if your business is financially healthy. But too many companies overlook it. If you don’t know whether you can cover your short-term bills or invest in potential opportunities, you might be setting yourself up for trouble. Read: A Complete Guide to Financial Statement […]
Budget vs Actual Explained: How Does It Affect Your Business?
Let’s face it – there’s hardly a financial plan that survives first contact with reality. And budget vs actual is where those plans get tested in the real world. The whole story is actually really simple: compare what you had planned to spend or earn with what actually happened. But the insights it provides? […]
Margin Analysis – The Definitive Guide
Margin analysis helps you determine how much of your revenue turns into profit – and where you might be losing money. It plays a crucial role in profitability analysis, providing insights into inefficiencies that can impact overall financial health. Read: A Complete Guide to Financial Statement Analysis for Strategy Makers This guide will […]
Accounts Receivable – The Ultimate Guide
Accounts receivable is about the survival of your business. No two ways about it. Cash flow problems almost always start here. Every unpaid invoice is like a hole in your ship, slowly sinking your ability to pay suppliers, invest in growth, or even meet payroll. Read: A Complete Guide to Financial Statement Analysis for Strategy […]
What the Cash Conversion Cycle Formula Means + Benchmarks & Examples
Are you in control of your cash, or is it controlling you? For many businesses, the problem isn’t how much money is coming in—it’s how long it takes to get there. The Cash Conversion Cycle formula (CCC) helps you spot where your money gets stuck-like when inventory takes too long to sell or customers delay […]
4 Critical Financial Statement Limitations and How to Overcome Them
Financial statement limitations can impact your decision-making. Picture this: you’re preparing for a very important quarterly meeting with your executive team. The statements are ready – carefully compiled and proofed. Halfway through the meeting, you’re done with the presentation, everything is running smoothly – based on financial statements it seems that your revenue is growing […]
The Complete Guide to Efficiency Ratios
Is your business running efficiently, or are you burning cash? Efficiency ratios help you find out. These simple metrics reveal how well you’re using resources like inventory, assets, and receivables to generate revenue. For example, what’s sitting in your warehouse right now? If inventory isn’t moving, it’s costing you money. What about overdue invoices? […]
How to Make the Current Assets Formula Work for You
The current assets formula helps you understand your business’s short-term financial health. It shows how well you can use resources like cash, receivables, and inventory to cover immediate needs. Getting this formula right means better decisions, smoother cash flow, and fewer financial surprises. In this blog, we’ll explain the formula in simple terms, break […]
How to Prepare an Income Statement in 5 Simple Steps
To put it simply right at the start – preparing an income statement is the key to understanding a company’s profitability. From what you’ve earned, to what you’ve spent – it records everything to the last penny, providing a clear snapshot of financial performance during a specific period. Read: A Complete Guide to Financial […]
Profitability Ratios: What They Are and How to Use Them
Inefficiencies can sometimes be hidden, and they can cost your business more than you’re aware of. So, do you understand the profitability ratio definition and how it can show where your business stands? Being profitable means knowing how well your company is using its resources to generate profit. In essence, profitability ratios are tools […]
