#financial-health
Оценете и подобрете финансовото здраве и стабилност на бизнеса си
The quick ratio (acid-test ratio) strips inventory and prepaid expenses from current assets to test whether cash, receivables, and marketable securities alone can cover current liabilities. Includes the formula, a worked example where a 2.5 current ratio hides a 1.0 quick ratio, industry benchmarks, and the aged-receivables blind spot.
ROIC measures how efficiently a business turns debt and equity into after-tax operating profit — NOPAT divided by invested capital. Learn the formula, why it beats ROI and ROE, the WACC benchmark that separates value creators from value destroyers, and the five calculation mistakes owners make most.
The times interest earned (TIE) ratio — EBIT divided by interest expense — tells lenders how many times over your operating earnings cover your interest bill. Most lenders want at least 2.5–3.0; below 1.5 signals high default risk. Here's how to calculate it, where it falls short, and how to improve it before a loan application.
Days Inventory Outstanding (DIO) measures the average number of days it takes a business to sell through its inventory, calculated as average inventory divided by cost of goods sold, multiplied by the number of days in the period.
Days cash on hand measures how many days a business can pay operating expenses using only its current cash balance, with small businesses typically running 30–60 days and 90+ days considered a strong cushion.
The Altman Z-Score combines five financial ratios into one number that predicted bankruptcy with 72% accuracy two years out. This guide covers the original formula, the Z' and Z'' versions for private and non-manufacturing firms, a worked example, and how to screen your own company, customers, and suppliers.
The sales-to-AR ratio measures the share of revenue stuck in unpaid invoices. This guide explains how to calculate it, what good looks like by industry, and how to drive it down within one or two quarters.
Clean books and real-time financial visibility separate small businesses that survive recessions from those that don't — learn how to use bookkeeping as an early-warning system, build cash reserves, cut costs strategically, and access credit before you need it.
Revenue is one of the least useful indicators of business health. This guide walks through 10 diagnostic questions—covering gross margin, current ratio, DSCR, AR turnover, and more—that reveal whether your business is actually on solid financial footing.
60% of small businesses struggle with cash flow, yet most financial problems are preventable with the right systems. This 7-phase guide walks you through auditing your books, cutting wasteful expenses, separating personal and business finances, and building a cash flow forecast that keeps you out of crisis mode.
A 5% profit margin can thrive in one industry and fail in another. See benchmarks for gross, net, and operating profit margins and proven ways to improve yours.
Understanding the return on investment for professional bookkeeping can transform your small business. Learn how effective bookkeeping not only prevents failures but also drives growth by providing clarity on financial health.
