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Author: Kevin Lowther

Financial ratios are quantitative measures used to assess the performance and the overall financial health of a business. The end goal of using ratio analysis is to improve the decision making process....

2020 will certainly be a contender for one of the most extraordinary years in our lifetimes. The COVID-19 pandemic (and the ensuing shutdowns) has had a devasting effect on a large number of businesses. Others have been lucky enough to survive, and others even thrived. What the pandemic has taught, if anything, is the need to adapt, be in tune with our finances and adapt some more. Read more...

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...