April 25, 2017  
 
  Entrepreneurs  
 

Financial Analysis for Small Business

 

 
Gaebler.com is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

The most successful entrepreneurs routinely leverage financial analysis in decision-making and management. Financial statements, debt ratios, cash flow and other financial indicators are critical tools and in this section, we'll tell you how they can be utilized in your small business.

Financial Analysis for Small Business

  • Financial Metrics - If you can't measure it, you can't manage it. The fourth article in this four-part series on financial statements focuses on financial metrics.
  • Income Statements - If you'd like to understand the significance and function of financial statements as it relates to running a business, then this article is for you. The third article in this four-part series on understanding financial statements focuses on Income Statements.
  • Cash Flow - So you've developed an amazing product and are ready to start a business, but you're not exactly a big finance person. The first article in this four-part series on understanding financial statements focuses on cash flow statements.
  • Understanding Discounted Cash Flow - Discounted cash flow is a very important concept in business valuation. Discounted cash flow, or DCF, is an income approach to business valuation.
  • Efficiency Ratios - Ratio analysis is a fundamental tool for management, investors, or other stakeholders to evaluate the health of a firm's operations. This article introduces some common efficiency ratios and how they are calculated.
  • Liquidity Ratios - To effectively evaluate the credit worthiness of a company, one must calculate its liquidity ratios from the business' financial statements. This article introduces you to some common liquidity ratios and how they are calculated.

  • Profitability Ratios - To effectively evaluate a company's successfulness at generating returns and profits from its operating investments, one must utilize profitability ratios. This article introduces some key profitability ratios and how they are calculated.
  • Understanding WACC - Since many analysts use the weighted average cost of capital (WACC) to discount cash flow, it is important to at least understand how WACC works.
  • Balance Sheets - Are terms like cash flow, balance sheets, and EBITDA all Latin to you? The second article in this four-part series on understanding financial statements focuses on balance sheet statements.
  • Debt Ratios - Ratio analysis is a fundamental tool for management, investors, or other stakeholders to evaluate the health of a firm's operations. This article introduces you to leverage ratios and how they are calculated.
  • Understanding the Conference Board Leading Economic Index - Economists often argue whether or not the economists is technically in a recession or not; while technical definitions for a recession vary, many economists look to the Leading Economic Index (LEI) as a forecast tool to judge where the economy is heading. Business owners and entrepreneurs can benefit from monitoring the LEI in order to better prepare for financial downturns or upswings.

 

 

 

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