The concept of liquidity, types and how to calculate
The meaning of the word liquidity is not as confusing a term as it might seem. In essence, liquidity is the ability of something (an asset) to quickly turn back…

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How to start a crayfish farming business
One common form of small business is selling beer. In Russia, they especially like a foamy drink, which means they buy many types of snacks for it. One of the…

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How to become a bank manager
If banking is your industry, consider what it takes to be a bank manager. Bank managers provide daily assistance to clients, and also fully manage the staff of the branch.…

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How to develop a business plan
For the success of the enterprise and the company as a whole, you need the right development strategy, which needs to be thought out to the smallest detail. The best…

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Operating lever

Typically, business owners are interested in two interrelated indicators: revenue and profit. Revenue shows how much the company has earned, and profit shows how much is left after deducting expenses.

Most likely, if the revenue is higher, then the profit will be higher. The opposite also works: if revenue falls, then the same will happen with profit. And everything would be very simple if there was a direct relationship between the indicators. But no: revenue can sink quite a bit, and this will lead to big losses. Continue reading

Types of cash flows
Three types of cash flows It is customary for entrepreneurs to divide the cash flow into receipts and disposals and compare: if the amount of expenses is greater than the…

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How to conduct business process analysis
A business process is a system that a company uses to achieve a goal. Also, this term can be defined as a sequence of actions that allows you to create…

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How to analyze the ratio of debt to equity
The debt-to-equity ratio is a financial measure used to assess a company's capital structure, more specifically, to estimate the relative proportions of a firm's assets that are funded by debt.…

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