See Also: Balance Sheet Current Assets Current Liabilities Working Capital Analysis Quick Ratio Analysis Net Cash Current Ratio Definition The current ratio definition, defined also as the working capital ratio, reveals company’s ability to meet its short-term maturing obligations. Values for the current ratio vary by company and industry. In theory, the larger the ratio
See Also: Company Valuation Coupon Rate Bond Fixed Income Securities How to Manage Your Banking Relationship Long Term Debt Non-Investment Grade Bonds Par Value of a Bond Covenant Definition The covenant definition is a restrictive clause in a bond contract. The purpose of the clause is to protect the lender (the party that invests in
See Also: Categories of Banks Finding the Right Lender Funding Source Versus Lender How to Manage Your Banking Relationship Interest Rate Is it Time to Find a New Bank? Financial Jargon My client, Elliott, met a friendly banker at a networking function. The banker told him, “I like your business and would like to loan
Thirteen Week Cash Flow Report Definition The Thirteen Week Cash Flow Report, defined as a method to forecast the cash flow needs of a company, is commonly used in businesses with complicated cash cycles. When active cash management is required, this tool is especially useful. This model is used best as a “big picture” tool to
Accounts Receivable Turnover Example To emphasize it’s importance we will provide an accounts receivable turnover example. Many companies live and die by collections. These rates are essential to having the necessary cash to cover expenses like inventory, payroll, warehousing, distribution, and more. Accounts Receivable Turnover Example: Manufactco Manufactco is a company that manufactures widgets. Manufactco’s
See Also: Accounts Receivable Turnover Example Financial Ratios Collecting Accounts Receivable Accounts Payable Turnover Analysis Inventory Turnover Ratio Analysis Daily Sales Outstanding Formula Accounts Receivable Turnover Definition Accounts receivable turnover analysis can be used to determine if a company is having difficulties collecting sales made on credit. The higher the turnover, the faster the business
See Also: Collect accounts receivable Why Use a 13-Week Cash Flow Report as a Management Tool? Unlock Cash in Your Business Accounts Receivable Collection Letter Always send reminder and collection letters. Letters combined with calls can help speed up your collections! Trigger points for letters may be as follows: Balance at 30 days receives a
See Also: Accounts Receivable Turnover Collect Accounts Receivable Calculate Daily Sales Outstanding Time Saving Tip for Filing Vendor Invoices Accounts Payable Notes Receivable Imprest Account Accounts Receivable Definition The accounts receivable definition is a current asset account on the balance sheet. Accounts receivable (A/R) is a mainstay concept in business. It also represents money owed to
13 Week Cash Flow Report Definition Define the 13 Week Cash Flow Report as a method to forecast the cash flow needs of a company. It is commonly used in businesses with complicated cash cycles. This tool is especially useful in a situation where active cash management is required. Use the 13 Week Cash Flow
“Many companies own the land and buildings necessary to conduct the day-to-day operations of their business. Oftentimes this valuable asset is included in traditional bank financing packages as the cornerstone of the credit facility. As long as the business progresses as the bank deems appropriate, and all loan and debt service coverage covenants remain in
Learn how to develop a daily cash report in today’s blog. Use the Daily Cash Report to report on the daily cash balance and to help manage cash on a weekly basis. This tool is especially useful when entering a situation where active cash management is required for your daily cash flow. The daily cash
Recapitalizing Your Company Using Mezzanine Financing “There comes a time in every company’s life cycle when the company and/or the entrepreneur need some more cash. Perhaps the company needs more working capital or some additional money to help fund an expansion. Or, maybe the entrepreneur feels that it’s time to reap the benefit of all
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