Liquidity is the ability to convert assets into cash quickly. Learning about each of these ratios can help you identify trends and make changes to your operations. Comparing them internally to previous time periods allows you to track changes. While comparing to...Read More »
As a business owner it is important to understand how efficient your company is at managing assets such as inventory and receivables. This information is identified during a financial analysis exercise. Efficiency ratios vary from industry to industry, but the most...Read More »
Financial statement analysis is used by many groups of people. Some of these include investors and creditors who are making investment and lending decisions. Most importantly, business owners can use them to measure the effectiveness of their operations, investments,...Read More »
What makes your business valuable to potential buyers? What factors can increase your business valuation? Tangible assets such as land and equipment are only a small part of what makes your company valuable. Often intellectual capital, the intangible part of a...Read More »
This glossary of concepts covers some important key terms a business owner should understand when receiving a business valuation. Comps or Comparable Company Analysis: a method which compares similar companies to the company being valued. Valuation multiples...Read More »
