Category: Finance and Credit Risk Management
Commercial credit, counterparty risk, portfolio health, working capital, and the cash flow signals that move earlier than the income statement.
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Types of profit and why looking at more than one type will save the day
Gross profit is a fundamental financial metric that reflects the efficiency of a company in producing and selling its goods. It is calculated by subtracting the cost of…
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When sales no longer dominate and other commercial financial statement warning signs
In recent years, many businesses have faced the challenge of declining sales revenue, a trend that can be attributed to various factors including market saturation, changing consumer preferences,…
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All sales is revenue but not all revenue is sales in commercial finance
Sales and revenue are terms often used interchangeably in business discussions, yet they represent distinct concepts that are crucial for understanding a company’s financial health. Sales refer specifically…
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10 financial terms that get misdefined
In the intricate world of finance, a robust understanding of financial terms is essential for both individuals and businesses. Financial terminology serves as the foundation upon which economic…
By Robert Kirk
Read →: 10 financial terms that get misdefined -
Accrual accounting and the curse of deferred revenues for the SaaS business
Accrual accounting is a fundamental principle that governs how revenues and expenses are recognized in financial statements. In the context of Software as a Service (SaaS) businesses, this…
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Why future deliverables are deferred and other reserve accounts ray and their purpose
In the realm of project management, the concept of future deliverables and reserve accounts plays a pivotal role in ensuring that projects are completed on time, within budget,…