Back in the day, month end reports consisted of a income statement, balance sheet, and maybe a cash flow statement. These are the three statements that made up your financial statements for month end reporting. As technology advanced and people got smarter about tracking trends, analysis, and operations today, the month end report includes much
See Also: ROE (Return on Equity) ROIC (Return on Invested Capital) ROCE (Return on Capital Employed) Definition ROCE stands for Return on Capital Employed; it is a financial ratio that determines a company’s profitability and the efficiency the capital is applied. A higher ROCE implies a more economical use of capital; the ROCE should be
See Also: Direct Labor Variance Formulas Direct Material Variance Formulas Asset Market Value versus Asset Book Value Accounting Income vs Economic Income ProForma Financial Statements Variance Analysis Variance analysis measures the differences between expected results and actual results of a production process or other business activity. Measuring and examining variances can help management contain and
See Also: Tips on How to Manage Your Lawyer What Relationship Should the General Counsel Have With the Board How to Keep Your Corporate Veil Closed Corporate Veil Sunk Costs Bankruptcy Costs Ten In-house Secrets For Reducing Your Company’s Legal Costs ‘General Counsel,’ or “Chief Legal Officer,” is the job title of the lawyer who
See Also: Federal Unemployment Tax Act (FUTA) Tax Brackets Prepaid Income Tax Marginal Tax Rate Cash Flow After Tax Ad Valorem Tax Tax Efficiency Definition Tax efficiency, defined as the process of organizing an investment so that it receives the least possible taxation, is as important in general investment as it is in business. Business,
See also: Daily Sales Outstanding Calculation Operating Cycle Definition Unlock Cash in Your Business Turnover in Collections is Destroying Your DSO Daily Sales Outstanding (DSO) Dales Sales Outstanding Explanation Often days sales outstanding (commonly referred to simply as DSO) is used as a measure of the average number of days it takes for a company
See Also: Total Quality Management Capital Structure Management Activity Based Management (ABM) Retainage Management and Collection Management Definition Management Audit Definition A management audit can be defined as an audit which analyzes the effectiveness of the management team of a company. The purpose of this is seven-fold: understand current practices, relate these to company financials,
See Also: Direct Cost vs Indirect Cost Direct Labor Variance Analysis Cost Driver Direct Material Variance Formulas Direct Labor Variance Formulas Commonly used direct labor variance formulas include the direct labor rate variance and the direct labor efficiency variance. Below are the formulas for calculating each of these variances. Direct Labor Rate Variance Direct labor rate variance
See Also: Economic Indicators Economic Value Added Supply and Demand Elasticity Business Cycle Porters Five Forces of Competition Efficient Market Theory Efficient market theory hypothesis proposes that financial markets incorporate and reflect all known relevant information. The validity of efficient market hypothesis is debated; however, whether or not efficient market hypothesis is valid, it is useful
See Also: Activity Based Management Capital Structure Management How to collect accounts receivable How to manage inventory Why Exit Planning Economic Value Added Definition Economic value added (EVA) measures the effects of managerial actions. It also focuses on managerial effectiveness in a given year. Economic Value Added Formula Use the following formulas to calculate the
See Also: Are You Collecting Business Data? Business Intelligence and Finance Marking-to-Market Company Life Cycle Market Positioning Budgeting 101: Creating Successful Budgets Navigating Black Swan Events Problems When Experiencing Business Growth Benchmarking Analysis What is benchmarking analysis? Benchmarking is the process of comparing a company’s performance to the performance of other companies. Management can do
See Also: Fixed Costs Inventoriable Costs Marginal Costs Replacement Costs Process Costing Average Cost Definition Average cost per unit of production is equal to total cost of production divided by the number of units produced. It is also known as the unit cost. Especially over the long-term, average cost normalizes the cost per unit of
JOIN THE NEXT STRATEGIC CFO™ WORKSHOP SERIES
Strategic CFO™ Financial Leadership Workshop
The Art Of The CFO®
August 7-10th, 2023
CONNECT WITH STRATEGIC CFO™
