Category Archives: News

Liquidation Value – What It Is, Why It Matters & What to Do With It (October 2023)

When a business is in financial trouble, an understanding of its “liquidation value” is essential. Liquidation value is the value of the monetized components of the business, such as accounts receivables, equipment, etc., should the business not be sold as an ongoing concern. Who gets what is then a function of creditor claims on specific assets. This month, I explain why a thorough analysis of the various components and expert guidance regarding the “creditor waterfall” are essential pieces to this complicated puzzle. Read more…

Different Situations, Different Financial Statements (September 2023)

Financial statements are intended to serve a purpose, whether that means sharing how a business is doing with outside entities or managing internally. There is no one-size-fits-all format. Today’s newsletter looks at the most important factors to consider when determining which statements are appropriate for which users and situations. Read more…

Do You Understand the Critical Path? (August 2023)

Getting anything but the simplest of things done, as quickly as possible, requires first identifying the critical path and then finding ways to shorten it. If you want to get things done without delay, you will need to specify the critical path steps involved. Today’s newsletter looks at ways to shorten — or, at the very least, avoid delays in — the critical path. Read more…

The Fixed Charge Coverage Ratio and Your Business (July 2023)

The Fixed Charge Coverage Ratio (FCCR) is a measure of how much cash flow there is to cover debt service payments. A lowering of this important ratio is a warning that your company’s financial situation has deteriorated. Today’s newsletter looks at the FCCR and offers suggestions for keeping yours high. Read more…

Do You Understand Opportunity Cost? (June 2023)

Opportunity cost is an essential, but often misunderstood, business concept. In short, it is about determining the highest use and highest value of a given resource, whether that’s time, money, production capacity, or something else. In today’s newsletter we look at opportunity cost, its two most critical components, and offer suggestions for using it properly when evaluating alternative courses of action. Read more…

Business Processes – the Key to Consistent Results (May 2023)

Businesses need processes. But what makes a process a good process and what factors need to be considered to optimize process within your organization? Today’s newsletter takes a look and shares suggestions. Read more…