Is your working capital on target?

Working capital equals the difference between current assets and current liabilities. Organizations need a certain amount of working capital to run their operations smoothly. The optimal (or “target”) amount of working capital depends on the nature of operations and the industry. Inefficient working capital management can hinder growth and performance.

2021-06-22T10:14:48-06:00June 22nd, 2021|

Manage Your Supply Chain Risks

When the COVID-19 crisis exploded in March, among the many concerns was the state of the nation’s supply chains. Business owners are no strangers to such worry. It’s long been known that, if too much of a company’s supply chain is concentrated (that is, dependent) on one thing, that business

2021-04-12T14:53:50-06:00September 15th, 2020|

Manage Your Working Capital

Working capital is calculated as the difference between a company’s current assets and current liabilities. For a business to thrive, working capital must be greater than zero. A positive balance enables the company to meet its short-term cash flow needs and grow. And, too much working capital can be a

2021-04-12T14:54:37-06:00December 17th, 2019|

Why Cash is King

In financial reporting, investors and business owners tend to focus on four key metrics: 1) revenue, 2) net income, 3) total assets and 4) net worth. But, when it comes to gauging short-term financial performance and creditworthiness, cash flow is what counts. If a business doesn’t have enough cash on

2021-04-12T14:54:38-06:00November 19th, 2019|

Buy or Lease Business Equipment

Life presents us with many choices: paper or plastic, chocolate or vanilla, regular or decaf. For businesses, a common conundrum is buy or lease. You’ve probably faced this decision when considering office space or a location for your company’s production facilities. But the buy or lease business equipment quandary also

2021-04-12T14:55:12-06:00May 28th, 2019|

How Do Profits and Cash Flow Differ?

How do profits and cash flow differ? Business owners sometimes mistakenly equate profits with cash flow. Here’s how this can lead to surprises when managing day-to-day operations — and why many profitable companies experience cash shortages. Working capital Profits are closely related to taxable income. Reported at the bottom of

2021-04-12T14:55:31-06:00January 29th, 2019|
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