Archive for the Financial Management Category


Managing Working Capital to Spur Growth – October 2014

This topic concerns financial management. In some cases when revenue increases there is not a sustained improvement in working capital management. The unfortunate result is reduced profitability as measured by return on capital. Such an inefficient use of capital requires the attention of the CFO. The cause of this situation is companies require more working […]

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Take Profitability Analysis to The Next Level – September 2014

This topic concerns financial management. Many small businesses gauge their performance by focusing on profit margins. This is a very important measure which can indicate the need for better pricing, cost reduction, as well as better utilization of capacity or floor space. However, there is another measure that can be used to take profitability analysis […]

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Managing Cash Flow : The Importance of Working Capital – August 2014

This topic concerns financial management. One of the CFO’s crucial functions is to provide effective cash management for the firm. A major component of cash management is working capital management, which is critical for inventory and receivable heavy companies such as retailers, wholesalers, resellers, distributors, and manufacturers. Quick cash fixes can often be harmful to […]

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Add Certainty to Your Decision Making – March 2014

This topic of interest involves financial management.  One of the most important corporate decisions to involve a CFO is capital allocation.  This decision entails how a company invests its resources which, in turn, determines the value that accrues to the owners of the company.  While, in the end, the CEO is responsible for capital allocation decisions, […]

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How to Measure Your Company’s Liquidity – February 2014

The following addresses an important topic in Financial Management.  Liquidity reflects the degree to which an asset or liability is convertible to cash.  A good assessment of a company’s liquidity is important because liquidity is used to determine a company’s financial health.  Creditors use it in loan covenants to require that borrowers  maintain an acceptable of […]

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