In the world of business finance, managing cash flow effectively can mean the difference between thriving and merely surviving. One critical metric that businesses often use to gauge their efficiency in this area is the Cash Conversion Cycle (CCC). This … Read More
The Cash Flow Statement is an analysis of sources of cash that flowed into and out of the business for the accounting period. The information is grouped by functional department, because Cash can be freed up from anywhere (such as … Read More
In the realm of business acumen, understanding the financial aspects of your business is crucial. One key aspect of this is understanding the difference between direct and indirect costs. These two types of costs are fundamental to budgeting, financial planning, … Read More
Return On Sales, often abbreviated as ROS, is a fundamental financial metric that sheds light on a company’s profitability. It’s important because it reflects a company’s efficiency in converting sales into profits How to Calculate Return on Sales ROS is … Read More
If you were to sell off everything in your business at book value and pay off your debts, how much cash would you be left with? That’s shareholder equity. In other words, shareholder equity is the amount of the business … Read More
At its bare bones, “capital” is wealth. But as the definition is fleshed out, it becomes clear that not all kinds of capital are alike. Every employee needs to understand the basics of working capital to ensure they are equipped … Read More
Cash is like air; profit is like food. You need cash all the time, but you can survive, for a while, without profit. All employees must understand the difference between cash and profit to make the best decisions for your … Read More
Gross margin is a finance term that seems to be defined differently by every company. Gross Margin Defined Gross margin is gross profit expressed as a percentage of sales. Gross profit is the money earned from a sale minus the … Read More
What is a balance sheet? The Balance Sheet is a statement of what you have (in the business) and where the funding came from. It adds together all the assets in the business (“what you have”), and adds together all … Read More
Depending on your position in your company, you might see a lot of sales revenue coming into the organization. But when will the the company actually able to use it? Today’s finance phrase can help you find out. Days sales outstanding … Read More