profit

Tag: profit

Margin vs Markup

See Also: Gross Profit Margin Analysis Retail Markup Chart of Accounts (COA) Margin Percentage Calculation Markup Percentage Calculation Margin vs Markup Differences Is there a difference between margin vs markup? Absolutely. More and more in today’s environment, these two terms are being used interchangeably to mean gross margin, but that misunderstanding may be the menace

Read More

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

Read More

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

Read More

Adding Value as a Financial Leader

The role of the CFO or financial leader of an organization used to be termed as a “numbers cruncher”. For many reasons, The Strategic CFO has been working tirelessly to coach, consult, and mentor CFOs, Controllers, and others in the finance and accounting function to go from being a number crunchers to a value-adding financial leader.

Read More

Managing the Banking Relationship in a Growing Market

Business is rarely easy.  Even in a growth market, there are still challenges.  They are just different challenges than in a recession. Managing the Banking Relationship in a Growing Market In Houston, we are seeing companies who are continuing to grow and generate cash. As they seek to expand their operations and invest in infrastructure, they are running

Read More

3 Benefits of an Analysis of Customer Profitability

Over time weeds grow in any garden. In the same way, unprofitable customers work their way into your company. To avoid the high costs of low profit customers, you should perform an annual analysis of customer profitability. Therefore, weed your garden of customers who are sapping your profits and cash flow. Although there are many

Read More

Why Don’t I Have Cash?

See Also: Cash Cycle Cash Flow Statement Free Cash Flow External Sources of Cash Why Don’t I Have Cash? I was involved in a meeting with a prospect a few weeks ago who we will call Don. Don owns a manufacturing company which is presently experiencing a growth rate of thirty percent annually. He is

Read More

Segmenting Customers for Profit

Segmenting Customers for Profit Process Market segmentation is the process of dividing up the total market based on identifiable characteristics, which have common needs. You can also apply the concept of market segmentation to your customers. For example, you can segment your customers based on the cost to service, the size of the average sale

Read More

Segment Margin Example

See also: Segment Margin Margin vs Markup Prepare a Breakeven Analysis Budgeting 101: Creating Successful Budgets Cost Volume Profit Definition Variable vs Fixed Costs Segment Margin Example Segment Margin is important to a company because, most obviously, companies make profits off of their services and products. To acquire revenue from these services and products, a

Read More

Revocable Trust

See Also: Pension Plans Keogh Plan Credit Life Insurance 401k Individual Retirement Account (IRA) Revocable Trust Definition A revocable trust is an agreement between a grantor and trustee where it transfers profit generating assets to the trustee. However, the grantor is still able to generate income from the assets. The grantor is also able to

Read More

Return on Asset

See Also: Financial Ratios Internal Rate of Return Method Net Present Value Method Net Present Value vs Internal Rate of Return Required Rate of Return What The CEO Wants You to Know Return on Asset Definition Return on asset (ROA) reveals how much profit a company earned in comparison to its overall asset. The value

Read More