Working Capital Over Total Assets Ratio

The working capital over total assets ratio is a financial ratio used by a business to give an indication of it’s liquidity or financial distress. The ratio is calculated by taking the difference between the current assets and current liabilities and dividing this by the total assets of the business.

Working Capital Over Total Assets Ratio May 19th, 2017Team
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Retained Earnings Total Assets Ratio

A business can fund it’s operations from both internal (retained earnings) and external (debt and injected capital) sources. The retained earnings to total assets ratio is the ratio of the accumulated retained profits of the business compared to its total assets, and is an indication of the percentage of assets funded by internal resources.

Retained Earnings Total Assets Ratio May 19th, 2017Team
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Debt Ratio in Financial Projections

Leverage is the extent to which a business uses liabilities relative to equity to finance it’s assets. The debt ratio is the ratio of liabilities to assets and is used in the financial projections template as one indicator of financial leverage.

Debt Ratio in Financial Projections May 12th, 2017Team
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Operating Return on Assets Ratio

The operating return on assets ratio measures the ability of a business operation to use its assets to generate earnings. It is calculated by dividing the operating income by the assets of the business.

Operating Return on Assets Ratio April 28th, 2017Team
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Understanding Cash Flow Statements in Startups

An understanding of the cash flow statement allows the startup entrepreneur to manage the cash flow of a business effectively. In doing so they will avoid many of the cash flow problems which can damage or even destroy what would have been a successful startup operation.

Understanding Cash Flow Statements in Startups April 5th, 2017Team
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Service Business Break Even Analysis

A service based business can use break even point analysis to calculate the number of units it is required to sell in order to reach break even. As a service business does not normally have a physical product to sell it must first define the unit (clients numbers, labor hours, projects, jobs etc.) to be used in the analysis.

Service Business Break Even Analysis March 8th, 2017Team
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Production Capacity Planning in Financial Projections

A manufacturing business needs to review its draft financial projections to ensure that they include sufficient capital investment to provide the production capacity needed to meet the sales demand forecast and the required inventory levels.

Production Capacity Planning in Financial Projections February 9th, 2017Team
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Target Costing and Selling Price

The target costing model is a method used by a business to determine the required manufacturing product cost necessary to achieve a given gross margin percentage based on a market driven selling price.

Target Costing and Selling Price December 13th, 2016Team
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Capital Expenditure Model in Financial Projections

Capital expenditure is a necessary part of operating a business and is included in the cash flow statement of the financial projections template. This capex model allows those costs to be estimated in detail and summarized.

Capital Expenditure Model in Financial Projections October 5th, 2016Team
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