analysis

Tag: analysis

Financial Ratios

See also: Quick Ratio Analysis Price to Book Value Analysis Price Earnings Growth Ratio Analysis Time Interest Earned Ratio Analysis Use of Financial Ratios Financial Ratios are used to measure financial performance against standards. Analysts compare financial ratios to industry averages (benchmarking), industry standards or rules of thumbs and against internal trends (trends analysis). The

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Working Capital Analysis

See Also: Balance Sheet How to Collect Accounts Receivable Factoring Working Capital from Real Estate Quick Ratio Analysis Current Ratio Analysis Financial Ratios Working Capital Analysis Definition Working capital (WC), also known as net working capital, indicates the total amount of liquid assets a company has available to run its business. In general, the more working

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General Ledger Reconciliation and Analysis

See also: Account Reconciliation Standard Chart of Accounts Problems in Chart of Account Design Cash Flow Statement Income Statement Subsidiary Ledger General Ledger Reconciliation and Analysis Definition Define a general ledger as the financial record of every transaction of a company. Commonly, it is referred to as the “books” of the company. In the general

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Customer Profitability

See also: Identifying Profitable Customers Segmenting Customers for Profit 3 Benefits of an Analysis of Customer Profitability Customer Profitability Definition The customer profitability definition is “the profit the firm makes from serving a customer or customer group over a specified period of time, specifically the difference between the revenues earned from and the costs associated with the customer relationship

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What Should Your Month End Reports Contain?

Back in the day, month end reports consisted of a income statement, balance sheet, and maybe a cash flow statement. These are the three statements that made up your financial statements for month end reporting. As technology advanced and people got smarter about tracking trends, analysis, and operations today, the month end report includes much

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Realizing Profit Potential

Over the years, we have asked our clients what business issues keep them up at night. Consistently, realizing profit potential was one of the top issues that kept business owners up at night. Is there money left on the table that hasn’t been realized? Is there potential that hasn’t been capitalized on yet? As a financial

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Mistakes Manufacturing Companies Make

Job costing, cost accounting, manufacturing costs, what does all of this mean? Oftentimes, job costing, cost accounting, and manufacturing costs are used interchangeably. As a manufacturer, it does not matter what you call it. But it is critical that as a manufacturer, you capture all of your conversion costs. Simply put, you are taking raw material

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Battling Uncertainty in Your Company

Uncertainty is all around. Sometimes, it’s more apparent than not. We subconsciously disregard a good chunk of unknowns in our personal life, but in our businesses, anything uncertain tends to cause chaos. Where is my next customer? Am I going to be able to pay bills? Is the economic climate going to pick up? We

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The Butterfly Effect: Planning with External Analysis

Every decision you make as a financial leader affects your business. Looking back on 2016 to now, a lot of events happened and changed the course of business. Often, there are events occurring in the world that either directly or indirectly impact your company. As a financial leader, it’s up to you to decide how to

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What do you do with unprofitable customers?

Have you ever come across that one customer who you would do anything to get rid of? Have you ever questioned what to do with the customer that causes more strife than good?  Whether they’re a drain or merely a pain, these customers cost you money.  So what do you do with unprofitable customers? Business is

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Goodwill Impairment

See Also: Goodwill Accounting Term Fair Market Value Asset Market Value vs Asset Book Value Intangible Assets Goodwill Impairment Definition Goodwill impairment is goodwill that is now lower in value than at the time of purchase. Goodwill is an intangible asset that sellers are willing to pay for; brand, reputation, a large customer base, strong

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PEST Analysis

See Also: SWOT Analysis Porter’s 5 Forces of Competition PEST Analysis Certain changes to the business environment can either help you or hurt you. Using the PEST Analysis, you can anticipate factors that can be used to your advantage or that you can solve before they affect your company negatively. Political Factors: Government policies regulate trade markets and

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