The Quick Ratio is a variation of the Current Ratio, and is also an indicator of a business’s ability to meet its financial obligations. To learn about the Current Ratio, visit our video library at www. CFOoutsource.com. As discussed in the Current Ratio video, the Current Ratio is a number that is derived by dividing […]
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Business Plans
Do you have a business plan? If so, how detailed is it? Does it include forecasts of income and balance sheets? And most importantly, does it include forecasts of cash flow? Does your business plan model allow you to modify important drivers, such as variations in monthly sales levels, variations by product, gross profit percentage […]
Controlling Labor Costs
For most businesses, labor is the biggest cost in the income statement. Fortunately, it is also one of the most controllable costs. But unfortunately, it’s a cost that most businesses have a hard time controlling. What makes labor so hard to control? There can be many factors, but several are common to most businesses: 1) […]