What Are Primary Limitations of the Balance Sheet (and How to Overcome Them)

primary limitations of the balance sheet, what they are and how to overcome them

The balance sheet is one of the pillars of financial planning, there’s no doubt on that one. It shows assets, liabilities, and equities – a true snapshot of what a company owns and owes. Therefore, it’s no wonder that investors, creditors, and managers take it as the starting point when making decisions. It displays the […]

Cash Ratio Definition – A Simple Guide to Liquidity + Examples

cash ratio definition

In finance, liquidity is everything. For companies, having enough cash to cover short-term debts is key for stability. Understanding the cash ratio definition is key—it’s a quick, reliable way to check if a company has enough cash on hand to meet immediate obligations.   In this guide, we’ll walk through what the cash ratio is, […]

Liquidity and Solvency Ratios – Metrics for Your Business’ Survival

liquidity and solvency ratios

Do you wonder if your business can survive both today’s demands and tomorrow’s challenges? Liquidity and solvency ratios reveal if a business is built to last.    In this guide, we’ll cover the essential ratios that finance teams use to stay agile in the short term and secure for the long haul.   Read: A […]

Classified Balance Sheet: Definition, Components, and Examples

classified balance sheet

When we talk about balance sheets, we’re actually referring to the core financial statements that describe a company’s financial health at a specific moment.    A balance sheet outlines a business’s assets, liabilities, and shareholder equity. This makes it easier for stakeholders to understand a business’s financial standing. However, when it comes to making in-depth […]

7 Balance Sheet Ratios for Better Financial Decision-Making

7 balance sheet ratios

Balance sheet ratios are a tool you can use to assess a company’s financial position at a specific point in time. Yes, the balance sheet shows you what the company owns (its assets), what it owes (its liabilities), and its shareholders’ equity. Ratios, on the other hand, can help you get a clearer picture of […]

What’s a Comparative Balance Sheet and Why You Need It

comparative balance sheet

There are several aspects of understanding a company’s financial health. And financial statements are one of them. After all, they do provide a clear picture of how well a business is performing. But one of the most powerful tools if you’re looking for comparisons and deeper insights is the comparative balance sheet.   Read: A […]

Account Analysis – A Short Manual

account analysis

Account analysis is one of the most powerful tools you can use to stay on top of your company’s financial health. Most commonly used by accountants and FP&A analysts, this method provides the in-depth insights you need to make smarter decisions. It’s used for fine-tuning your budget, tracking trends, optimizing your forecasts, and keeping your […]

Horizontal Analysis – How-to Guide + Examples

horizontal analysis

Horizontal analysis is an essential tool for making sense of financial trends. By tracking changes across periods, this method helps businesses spot patterns and make informed decisions.  From monitoring growth to managing costs, horizontal analysis gives you the insights needed to stay ahead and plan for what’s next. Ready to see how it can benefit […]

How to Build a 3 Statement Financial Model

How-to Guide for Building a 3-Statement Financial Model – a professional cover image introducing a step-by-step guide to creating an integrated financial model

Imagine you had to drive a car without a dashboard. You wouldn’t know how much gas you had, if the engines were working fine, or how fast you were going. Well, it’s pretty much the same if you’re running a business without a clear sense of its finances. This is where the 3 statement financial […]

Vertical Financial Analysis – A Practical Guide With Examples

vertical financial analysis

Vertical financial analysis is a key part of financial statement analysis that helps you understand how your company performs. In this blog, we’ll explain what it is exactly, how it compares to other types of analyses and how top companies use it to improve budgeting, forecasting, and decision-making. Read on to learn everything about vertical […]