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How can your Creditor Turnover Ratio help you? – Cash Flow part 2
If you need better cash flow, this is one metric to keep an eye on. You can work to decrease it whilst making sure you pay on time.
This can give you the breathing room, for example, to order stock and sell it before you need to pay for it.
Or, if you will be seeking credit soon, then you’ll want to work to increase this metric. That will increase your creditworthiness.
How can your Debtor Turnover Ratio help you? – Cash Flow part 1
Has your accountant ever said you had an excellent year, but your bank account was sitting far too close to zero for your comfort, and wondered why there’s such a discrepancy?
In this series, we’ll explore some of the metrics that impact your cash flow, including those that cause that discrepancy.
How can your EBITDA help you?
EBITDA is a marmite metric: Some people love it, some loathe it. It clarifies and distils some things, making comparison much easier. But it hides too much for some people. Read on to figure out whether it’s useful for you.
Profitable Price Cuts using your Contribution Margin – Fixed and Variable Costs part 2
How much from each sale is left to pay for your fixed costs?
How many more do you need to sell in a period to bring in the same amount to pay for your fixed costs?
Are you thinking about running a 75% off special for Black Friday? Read this first.
What are Fixed and Variable Costs? – Fixed and Variable Costs part 1
In this series, we will split costs based on their behaviour: they are either fixed, variable, semi-variable, or stepped fixed.
In this post, we’ll look at what each of those are, and the nuanced separation between direct and variable costs.
How can your Stock Turnover Ratio help you? – Direct Costs & Overheads, part 4
This ratio tells us the speed at which you sell your stock.
Use it to help you see which products and lines are selling better (or worse), whether you need more warehouse space, how to reduce warehouse costs, when to make more or less of different products, and more.
Read on for how to find yours!
How can your Operating Profit Margin help you? – Direct Costs & Overheads, part 3
The Operating Profit Margin tells us how efficiently your company manages its expenses.
Many people believe that this margin is a good indicator of the strength of the company’s management team.
How can your Gross Profit Margin help you? – Direct Costs & Overheads, part 2
In this blog, we’ll look at what your gross profit is, what your gross profit margin is, what it tells us, how to use it, and how you can improve it.
You should come away with at least one action point to implement in your business today in your quest to be more data-driven in a human way.
What are direct costs vs overheads? – Direct Costs & Overheads, part 1
When looking at your profit & loss report, you’ve probably noticed the expenses are split into 2 groups. Have you ever wondered why?
It’s to help manage the business, essentially.
In this series of blog posts, we’ll look at what direct costs and overheads are and what you can do with them. This post is focused on what they are.