Earning a net a profit after a net loss is not always an easy task, but it can be done. To do so, the company must first identify and analyze the causes for its net loss. With that information, the company can develop clear strategies to improve its operations and move forward to pro...
Explain how a company can have positive net income--perhaps even outstanding earnings--for a month or quarter but have negative cash flow from operations. Explain how goal alignment can improve profitability and overall return to the shareholders of the company. Expl...
Income statements or profit and loss accounts are financial statements used to calculate the financial health of the company.It shows the company’s revenues and expenses during a particular period, which can be selected according to the company’s needs. A P&L, which stands for profit and ...
There are thousands of bloggers and entrepreneurs out there that make a full-time income from their websites. The most successful make thousands (or even tens of thousands) of dollars every month. And in this post, we’re going to show you how you can do the same. ...
Understanding net working capital requires a deep dive into a company’s balance sheet, which provides a snapshot of its financial position at a given point in time. By analyzing the balance sheet, investors and analysts can assess the amount of working capital available to a company and...
Free cash flow is what is left after a business pays its day-to-day operating expenses, such as its mortgage or rent, payroll, taxes, and inventory costs. Learn how to calculate free cash flow and how to utilize it for your business.
Reducing Costs to Improve Net Margin Some of the greatest expenses a company incurs come from the day-to-day running of the business and the production of goods for sale.Operating expensescan be reduced by relocating headquarters to a cheaper part of town, leasing smaller factory space, or red...
How Can I Improve My Financial Performance? A company's financial performance can be improved in several ways. Of course, trying to identify any roadblocks or friction points—and the source of these problems—is the first step. Other strategies include: ...
A company can measure what it owes in the short term and also what cash revenue it expects to receive by recording accruals. It also allows a company to record assets that don't have a cash value such as goodwill. The offset to anaccrued expenseis an accrued liability account indouble-...
You can use computer software, such as Microsoft Excel, to quickly calculate profit margins. Types of Profit Margins There are three different types of profit margins: gross profit margins, operating profit margins, and net profit margins. Each one provides you with a peek athow efficiently a ...