Category: Financials

Working Capital Management

Working capital is actually the difference between company’s current assets and current liabilities and it is a very important financial ratio showing the company’s liquidity and efficiency. The current assets (reported on the balance sheet) include cash, accounts receivable and prepaid expenses. On the other hand, current liabilities are paid either by the current assets […]

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Balanced Scorecard Financial Perspective

– financial perspective (measuring and managing financial results – revenue, profit, returns, etc.) – customer perspective (strategies and tactics related to marketing, sales, CRM, etc.) – internal process perspective (KPIs for managing the operations efficiently and effectively) – learning and development perspective (developing sustainable organizational core competencies) The top of the balanced scorecard report includes […]

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Cost-Benefit Analysis Review and Tools

The decision or alternative might be a project, investment, organizational change and any business initiative. In addition the same approach can be used for evaluating cost and benefits for stakeholders such as customers. What is involved in the analysis? 1. Evaluation of the change in total cost with or without a certain alternative including all […]

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Financial Ratios, Statements, Analysis, Reporting and Planning Tips, Articles and Templates

Financial ratios, metrics, KPIs, financial statements analysis, financial reporting, planning, performance, financial dashboard development and more financial resources: Traditional Costing vs. Activity Based Costing Traditional costing treats overhead using the amount of a certain cost driver, like the volume of work hours required to manufacture a product. Cost driver is actually a point that triggers […]

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Financial Ratios Analysis and Formulas

Net Profit Margin Return on Assets (ROA) Return on Equity (ROE) Inventory Turnover Days Inventory Outstanding Average Collection Period Operating Cycle Fixed Asset Turnover Total Asset Turnover Working Capital Turnover Debt Ratio Debt to Equity Ratio Times Interest Earned

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