liquidity

Tag: liquidity

Selling Your Business & the Value of Accounting Records

M&A Current Environment 2020 and 2021 have been record years for mergers and acquisitions (M&A) despite COVID19.  Liquidity in the marketplace, abundance of retiring baby boomers, and low interest rates continue to fuel the M&A market.   This seller’s market has allowed multiples for selling businesses to remain at high levels.  Investment bankers representing sellers are

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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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Collect Accounts Receivable

See Also: Accounts Receivable Accounts Receivable Collection Letter Financial Ratios Accounts Receivable Turnover What is Factoring Receivables? Accounts Receivable Turnover Analysis Net 30 Credit Terms Collect Accounts Receivable Every company has them…past due and slow pay accounts. Here are some ways to help keep your cash coming in the door and collect accounts receivables. Improve

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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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Flash Reports Are a Game Changer

When we talk to people who have sales or operations backgrounds, we quickly pick up on their hatred/dislike/disdain/etc. for accounting. We get it. Accounting can be boring, especially if it’s not used for management purposes. But when we talk with the management team either in our coaching workshops or our consulting practice, we always implement

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Unlock Cash in Your Business

Unlocking cash in your business can make a major impact on valuation, cash flow, profitability, and so much more.  As the saying goes, “Cash is King.” However, there is often money lying around that is essentially “locked up” in the system. Unlocking Liquidity Liquidity is key to success. A company could sell all the widgets in

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What is Factoring Receivables

See Also: Another Way To Look At Factoring Accounting for Factored Receivables Journal Entries for Factored Receivables Can Factoring Be Better Than a Bank Loan? History of Factoring How Factoring Can Make or Save Money Factoring is Not for My Company The What, When, and Where About Factoring What Is Factoring Receivables? Factoring receivables is the

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What Is Dilution?

What is Dilution? Dilution is any portion, regardless of why, of your receivables that you did not collect. This is important as the amount available from your line of credit with the bank is based on your outstanding accounts receivable balance. The bank wants to know the extent to which your receivables are likely to

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Operating Capital Definition

Operating Capital Definition The operating capital definition is the cash used for daily operations in a company. As a result, it is essential to the survival of each and every business. Whether small or large, across industries, and under any other conditions that a business faces, lack of cash is one of the main reasons why

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Investment Risk

See Also: Hedging Risk Risk Premium Business Risk Interest Rate Risk Commercial Risk Investment Risk Definition The investment risk definition is the risk of a particular investment. Furthermore, an investment risk assessment usually contains several different forms ranging from interest rate risks to currency risks. Investment Risk Meaning Investment risk contains several different measures, including the

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Flash Reports

See Also: Income Statement ProForma Financial Statements Flash Reports Definition The Flash Report or financial dashboard report is defined as a periodic snapshot of key financial and operational data. It’s a one-page report that helps management assess the key performance indicators of the company. There is an art to creating a flash report or dashboard report! Flash reports should cover the shortest

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