In the first installment of this blog series, we learned about the tremendous impact the balance sheet can have on the health of a company. We talked about how the income statement and balance sheet play two very distinct, equally important roles, and how understanding both of them is critical to operating a well-managed company.
How well do you understand your company’s balance sheet? What about your cash conversion cycle? Could you quantify, in real dollars, how much it costs to maintain a certain level of receivables on your balance sheet or that inventory on the shelf? Could you articulate the true cost, or savings, of a loan or line
When considering whether or not to buy a building for your business, your banker can be a wealth of knowledge and information, and I encourage you to reach out to him/her. I can assure you they’ll be glad to hear from you. Once you make the choice to work with a lender on financing a
