by Chris Labatt-Simon | Jul 24, 2014 | Business, Employees, Innovation, Leadership, Metrics, Risk, Strategy
This post is going to be short and simple. One of the most overused quotes on the Internet – maybe in general – is by Albert Einstein. “The definition of insanity is doing the same thing over and over again and expecting different results.”...
by Wesley John | Jul 6, 2014 | Banking, Business, Finance, M&A, Metrics
This Return On assets post is the fifth post in a series of articles about financial ratios. Which Company is Worth More? Let us assume you are interested in purchasing a company that makes bicycles here in the USA. You have narrowed your search to two companies....
by Wesley John | Jul 1, 2014 | Banking, Business, Finance, Metrics, Risk
This is the fourth post in a series of articles about financial ratios. In evaluating any borrower for a loan or lease request, one of the financial ratios that lenders run is a Debt Service Coverage Ratio (DSCR or sometimes DSC) to determine if the loan can be...
by Wesley John | Jun 23, 2014 | Banking, Business, Finance, Metrics
When I was a young MBA student, one of my professors had a saying that has stuck with me ever since. “You can live without sales, you cannot live without cash flow” he used to say. This saying has been proven again and again to me in the course of my career as...
by Wesley John | Jun 16, 2014 | Business, Finance, Metrics, Risk
This is the third part of our series on ratios and what they mean to your business. Inventory turns are the amount of times in a fiscal year that you sell your complete inventory. The ratio is normally calculated by dividing sales by inventory on the year end balance...
by Wesley John | Jun 9, 2014 | Banking, Business, Finance, Metrics, Startup
An old bank customer of mine called me the other day. He was wondering whether he should borrow to finance an impending, but temporary, shortfall in cash flow later in the year. He had sufficient personal cash to inject to get over the hump. I advised him that he was...
