The Cash Conversion Cycle is probably the most ignored metric that has high relevance in businesses and to the operations, profitability, and performance of any organization. Although that is an issue affecting the general health of a company, this writing does not devalue or downplay this fact but seeks to understand and make this phenomenon lucid in a simple explanation to business people and their management on how the use of CCC would make businesses optimized for profit maximization.

Goodwill is an intangible asset that shows on the balance sheet of a business when one company purchases another for a price that exceeds the fair value of identifiable net assets. This actually represents the additional amount which the purchasing company has to pay over and above to the target company, essentially for brand name recognition and customer loyalty, market positioning advantages, and other intangibles, all which promise future earnings but cannot be traced separately.

To ...

In the world of financial reporting, transparency and accuracy are the keys. Companies rely on standardized methods to present their financial performance to stakeholders, hence allowing investors, regulators, and analysts to make decisions. Two key frameworks dominate financial reporting: Generally Accepted Accounting Principles (GAAP) and Non-GAAP measures. Understanding the differences between these approaches and their implications is important for anyone analyzing corporate financial sta ...

In the world of finance, whether you’re a business owner, investor, or financial analyst, understanding and managing financial risks is crucial to maintaining stability and achieving long-term success. Financial risk analysis is the process of identifying, assessing, and mitigating potential risks that could negatively impact an organization’s financial health. With the right financial risk analysis, businesses will be well-protected from unexpected issues, market changes, and even make prope ...

In the world of financial reporting, transparency and accuracy are the keys. Companies rely on standardized methods to present their financial performance to stakeholders, hence allowing investors, regulators, and analysts to make decisions. Two key frameworks dominate financial reporting: Generally Accepted Accounting Principles (GAAP) and Non-GAAP measures. Understanding the differences between these approaches and their implications is important for anyone analyzing corporate financial sta ...

Also familiar with the investors, Beta is an element by which the volatility of an asset’s returns is compared with the volatility in the market. It offers very good information about the level of risk associated to an investment and the behavior of the investment in certain market conditions. For investors to make the right decisions regarding their investments, it is important that they make distinction between positive and negative beta. In this blog, we will discuss what beta is, what thi ...

In recent years, the idea of sustainable finance has received much attention from businesses, investors, and policymakers. As the world deals with issues such as climate change, inequality, and corporate governance failures, the need to integrate long-term sustainability into financial decision-making increases. Sustainable finance integrates environmental, social, and governance factors into financial decisions, investments, and operations, which aligns financial goals with the greater good ...

Most people are familiar with the term "liquidation," but very few know that it does not necessarily mean the end for a business. Whether you are a business owner, investor, or just an interested observer, understanding what liquidation is will ensure that you make informed decisions when the going gets tough. In this blog post, we break down some key concepts, processes, and implications of liquidation so that you have a clearer idea of what it really means to businesses.

What is Liqui ...

Understanding terminal value is essential for accurate business valuations, especially in discounted cash flow analysis. In the world of finance, business valuation is a critical process for determining the economic worth of a company. Whether you are investing, acquiring, selling, or managing a business, understanding how to value a company accurately is essential. One of the most important concepts in this process is terminal value. 

In fact, terminal value often accounts for a s ...