Effective management of Days Sales Outstanding (DSO) is paramount for sustaining healthy cash flow and financial stability of corporates. Corporates, irrespective of their size or industry, must navigate the complexities of accounts receivable to ensure timely payments from customers. In this article, we delve into the critical Key Performance Indicators (KPIs) that corporates should diligently …
Days Sales Outstanding (DSO) is a critical metric in corporate finance that measures the average number of days it takes for a company to collect payment after a sale has been made. An efficient management of DSO is essential for maintaining healthy cash flow, optimizing working capital, and sustaining overall financial health. In this article, …
Efficient cash flow management is essential for the sustained success of any business. One key metric that provides valuable insights into a company’s operational efficiency and financial health is the Cash Conversion Cycle (CCC). In this article, we will explore what the CCC is, how it is calculated, delve into its components, and discuss strategies …
Working capital management is a crucial aspect of financial strategy for businesses of all sizes. It plays a pivotal role in ensuring the smooth day-to-day operations of a company and its ability to meet short-term obligations. In this article, we will delve into the fundamentals of working capital management, highlighting its significance, key ratios for …
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Understanding a company’s financial health is paramount for investors, analysts, and business leaders alike. Financial ratios analysis play a crucial role in this evaluation process, providing valuable insights into various aspects of a company’s performance. In this article, we’ll delve into the key financial ratios and how to analyse them to make informed decisions. Financial …
“The Psychology of Money” by Morgan Housel is a compelling exploration of the complex relationship between human behaviour and financial success. In this article, we’ll delve into some key learnings from the book, shedding light on the psychological factors that influence our financial decisions. Key Learnings from the Psychology of Money Understanding the Unpredictability of …
What is Weighted Average Cost of Capital (WACC)? WACC, or Weighted Average Cost of Capital, is a financial metric that represents the average rate of return a company is expected to pay to its investors for using their capital. It takes into account the cost of various sources of capital, including equity and debt, and …
Introduction In the dynamic landscape of financial analysis, Enterprise Value Multiples emerge as crucial metrics for valuation consultants seeking a holistic understanding of a company’s worth. In this article, we will explore what Enterprise Valuation Multiples are, delve into different types, understand their calculation methodologies with examples, and discuss the advantages and limitations of employing …
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Financial statement analysis holds paramount importance as a critical imperative for stakeholders seeking insights into a company’s overall health and performance. This analytical process involves a comprehensive examination of a company’s financial statements, unveiling crucial information that aids in informed decision-making and strategic planning. Financial statements serve as the bedrock of this analysis, providing a …
Valuation multiples play a crucial role in the corporate finance, providing analysts and consultants with valuable insights into the market’s perception of a company’s worth. In this article, we will delve into the definition of valuation multiples, explore the different types, understand the calculation methodologies with examples, and discuss the advantages and limitations of using …