The Financial Edge

As traditional accounting firms are pivoting towards advisory services or entirely shifting away...

Net profit margin (NPM)is defined as the percentage of revenue left over once all expenses (this includes but is not limited to operating expenses, interest, taxes, and specific stock dividends) are deducted from a company’s total revenue. 

The cash conversion cycle (CCC), also sometimes referred to as Cash Cycle or as the Net Operating Cycle, measures the time it takes for a businesses’ investments to become sales and then into revenue.

Just as the name suggests, ARPC is the average revenue generated from each customer per month. A company may also choose to calculate per quarter or year.

The Greek philosopher Heraclitus said, "change is the only constant in life." It doesn't matter...

Keeping a company running in the black is not an easy task. Sometimes it feels like balancing multiple spinning plates while juggling a couple of chainsaws. There is A LOT to keep track of, and the consequences of dropping a plate is hard, but a chainsaw well that is disastrous.

Running a business is a non-stop job. Keeping yourself up to date on the financial in’s and out’s...

Another way to explain this concept is to estimate how fast your company is consuming (or burning) its financing to support operations above cash flow. It’s a measure of negative cash flow.