#financial-analysis
Financial Analysis
Analyze financial data and metrics to evaluate business performance and health
Valuing a Closely-Held Business: Asset, Income, and Market Approaches for Exits, Buyouts, and Estate Transfers
Three valuation approaches — asset, income, and market — can produce 50% differences in indicated value for the same closely-held business. This guide explains when each fits, how DLOM and DLOC discounts apply, and what records owners need before a sale, partner buyout, or estate transfer.
The 2026 SaaS Metrics Stack: LTV, CAC, NRR, and the Rule of 40
A founder's guide to the SaaS metrics that win term sheets in 2026 — how to calculate MRR, ARR, CAC, LTV, NRR, churn, burn multiple, magic number, and the Rule of 40, with current benchmarks and the calculation traps that quietly destroy investor confidence.
Owner's Equity: What It Is, How It Works, and Why Every Small Business Owner Should Track It
Owner's equity is the most honest measure of your business's financial health—and most small business owners don't check it enough. Learn what it is, how to calculate it, what changes it, and how to use it to build long-term wealth.
What Is a Good Profit Margin? Industry Benchmarks and How to Improve Yours
A 5% profit margin can mean thriving in one industry and failing in another. This guide explains what a good profit margin looks like by industry, how to calculate all three types, and proven strategies to improve yours.
Equity in Accounting: What It Is, How to Calculate It, and How to Grow It
Learn what equity means in accounting, how to calculate it using the accounting equation, understand the difference between owner's equity and shareholders' equity, what negative equity signals, and practical strategies to grow your business equity over time.
Financial Statements: What They Are, How to Read Them, and Why They Matter
Learn about the four core financial statements every business needs: balance sheet, income statement, cash flow statement, and statement of retained earnings. Includes practical examples, key ratios, common mistakes to avoid, and a framework for using financial data to make better business decisions.
Fixed Costs: What They Are, How to Calculate, and How to Reduce Them
Learn what fixed costs are, how to calculate total and average fixed costs, the difference between committed and discretionary fixed costs, how they compare to variable costs, break-even analysis, and proven strategies to reduce fixed overhead expenses.
Gross Margin: What It Is, How to Calculate It, and How to Improve It
Learn what gross margin is, how to calculate it with the gross margin formula, industry benchmarks, the difference between gross margin and net margin, and seven proven strategies to improve your gross margin.
Gross vs. Net: What Every Business Owner Needs to Know About Income, Profit, and Pay
Understand the difference between gross and net across income, profit, pay, and revenue. Includes formulas, real-world examples, industry benchmarks, and common mistakes to avoid when analyzing your business finances.
Liabilities in Accounting: What They Are, Types, and How to Manage Them
Learn what liabilities are in accounting, the difference between current, non-current, and contingent liabilities, key financial ratios for analyzing debt, and practical strategies to manage your business obligations effectively.
The Most Important Financial Ratios Every Business Owner Should Track
Learn the most important financial ratios every business owner should track, including liquidity, leverage, profitability, and efficiency ratios—with formulas, examples, benchmarks, and practical tips for using them effectively.
Operating Expenses: What They Are, How to Calculate, and How to Reduce Them
Learn what operating expenses are, how to calculate the operating expense ratio, the difference between OpEx and CapEx, where operating expenses appear on financial statements, tax implications, and eight practical strategies to reduce your operating costs.