Tag: cash flow
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Working Capital 401: Cash Conversion Cycle (CCC)
We’ve covered working capital a few times in the past… But today we’re covering probably the all-time most useful ratio when it comes to managing working capital… the Cash Conversion Cycle (CCC). What is it? Your CCC measures how long (measured in days) it takes a dollar of cash to move through your business, from start…
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Every Small Business Needs a Financial Operating System
We’re big fans (and users) of Gino Wickman’s EOS (Entrepreneurial Operating System), which outlines a useful framework for business management. I’d highly recommend if you’re in need of a basic structure for meetings, people management, and setting a company vision. What it lacks is a robust financial management structure, or what I’ll refer to as a Financial Operating…
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Working Capital 301: Optimization Strategies
This is part 3 in a mini-series on working capital (check out part 1 here and part 2 here). Let’s recap the basics so far: With the basics covered, how do you spot warning signs in working capital? Let’s pull some real data from a real company here… what you’re seeing below is 22 quarters (5.5 years) of data highlighting days inventory…