Remove Assets Remove Cash Flow Remove Operations
article thumbnail

HR Finance 101: A Guide To Finance for HR

AIHR

Labor costs like salaries, benefits, and related taxes make up as much as 70% of total operating costs of a business. A debit is an entry that increases the value of an asset or expense in an account or decreases the value of equity or liability. Examples of assets are investments, tools, equipment, machinery, and patents.

Cash Flow 136
article thumbnail

Why Is Cash Flow Important To Survive In Our Tough Business Climate?

Growth Institute

It’s time that your entire management team learns the importance of your business’s cash flow story. Cash is king or queen. Having adequate cash flow shows your organization’s capacity to fund business growth and repay debt. Your entire management team must access and understand your cash flow story.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

It’s Time For Leaders To Rethink The Way Their Companies Make Capital Expenditures

Chief Executive

Instead, when a given site or plant makes a capex request, that request is judged only in terms of the anticipated change in cash flow of making—or not making—the investment in isolation. They spend their last dime on their worst assets because that’s where they believe they will get money back the fastest. It’s not fact-based.

article thumbnail

Why startups are hard — the math of venture capital returns tells the story

Andrew Chen

What to do when VCs get too entangled in the day-to-day operations of the business. This is a decidedly negative cash flow motion—money is going out with (likely) no near-term prospect of money coming in. Why you need to build relationships with potential acquirers long before you decide to sell.

Cash Flow 109
article thumbnail

The Top 13 Metrics that CEOs Should Measure for Strategic Success

LSA Global

Profitability Profitability metrics, including gross profit margin, operating profit margin, and net profit margin, offer a clear picture of the company’s efficiency and financial stability. Cash Flow Cash flow management is crucial for meeting day-to-day operational needs and setting the company up to invest in growth.

Metrics 57
article thumbnail

Stop Using The Wrong Inventory Metrics

Chief Executive

This will enable you to avoid major stockouts in your high-profit products, and write-offs in your profit drain products—creating strong positive profit and cash-flow benefits. They generate significant additional profit, cash flow and customer service benefits. Step 2 – Customer-optimized inventory.

Metrics 98
article thumbnail

Dos and Don’ts During a Hiring Freeze

Zenefits

Cash flow is critical for any business, big or small, across all industries. Hiring freezes are painful, but something has to give when cash flow is down. And for some businesses, hiring gets the ax until the cash starts flowing again. Recruiting, hiring, and payroll are big-budget items. Maintain liquidity.