UNDERSTANDING FINANCIAL RATIOS

UNDERSTANDING FINANCIAL RATIOS

Ratios are the Key Performance Indicators (KPIs) of a company and are divided into four sections: 1. Liquidity Ratios 2. Profitability Ratios 3. Financial Leverage Ratios 4. Efficiency Ratios Liquidity Ratios Working Capital Definition: The amount of capital available...
DEVELOPING THE BEST FINANCIAL STRUCTURE

DEVELOPING THE BEST FINANCIAL STRUCTURE

Get it sooner and you can invest it faster. The decision-making process is always easier if the top leadership is able to review swiftly the financial information of the company. For example, it should be unacceptable to wait weeks just to receive reports about the...
COMPENSATION ANALYSIS EXPLAINED

COMPENSATION ANALYSIS EXPLAINED

IMPORTANCE The Compensation Analysis examines the financial burden and contribution of employees in an organization. Many decision makers tend to ignore the compensation analysis and it is to their detriment for long-term success. Many companies tout a boastful tag...
PERFORMANCE MANAGEMENT EXPLAINED

PERFORMANCE MANAGEMENT EXPLAINED

IMPORTANCE Performance Management measures the efficiency of the business and financial systems of a company. It also serves to enlighten possible areas of concern that may be detrimental to the organization’s smooth operation and financial profitability. Without...
WHAT IS BUSINESS INTELLIGENCE (BI), AND HOW HELPFUL IS IT?

WHAT IS BUSINESS INTELLIGENCE (BI), AND HOW HELPFUL IS IT?

We live in a new Era We live in an era where speed and efficiency are the most desirable characteristics. The ability to obtain data, manipulate it, and develop actionable steps based on the information collected determines the secret to achieving these two factors....
GROWTH MANAGEMENT EXPLAINED

GROWTH MANAGEMENT EXPLAINED

IMPORTANCE Growth Management is the process in place to ensure that the company’s market value increases on a consistent basis. The following key tenets will ensure growth on a long-term basis: 1. Identify the major sources of Stress or Failure Determine the real...