Learn what liquidity is, how to measure it with the current ratio, quick ratio, and cash ratio, and discover eight practical strategies to improve your business liquidity. Includes formulas, worked examples, warning signs, and a real-world scenario comparing two businesses.
Learn what the break-even point is, how to calculate it with the break-even formula, and why every business owner needs this analysis. Includes step-by-step examples, common mistakes to avoid, and strategies to lower your break-even point.
Learn what burn rate is, how to calculate gross and net burn rate, and why this metric is critical for startups and small businesses. Includes formulas, stage-by-stage benchmarks, common mistakes, and strategies to extend your cash runway.
Learn how to determine what your business is worth using the four main valuation methods: asset-based, earnings multiple (SDE/EBITDA), market-based, and discounted cash flow. Includes formulas, industry multiples, and tips to increase your company's value.
Learn what EBITDA is, how to calculate it with step-by-step examples, and why this key financial metric matters for business valuation, investor comparisons, and operational performance analysis.