September 20, 2020
State and local restrictions continue to put an unprecedented amount of pressure on businesses. Some companies have already shut down while others are struggling to keep the lights on (unless a certain power company pulls the plug, but that’s a different story). All this pressure puts a spotlight on how quickly your company is generating and collecting cash. The Operating Cycle The first important financial metric is called the Operating Cycle. This is particularly useful for companies that sell products (rather than...