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The very first step to maximise your operating cash flows in your company is to identify the root of the problem. One of the best ways is to use a financial metric known as free cash flow (FCF). In simple terms, a company’s cash cycle for any period can be classified into: Operating (sales, purchases, salaries, […]

Many people have always considered net asset valuation in companies as one of the simplest and best methods. In the article, we try to analyse further insights of using net asset value in a valuation by using a simple illustration of a scenario. Net asset value is generally taken by having assets less your liabilities that is

No matter how well a company does, shareholders will be disappointed when there is no returns back to them. The returns back to shareholders for investment in companies would be called dividends. A good company should always have discipline to pay its shareholders dividends during the year. Therefore, a good metric to look at when sourcing for

In finance, the most basic of looking at a company’s performance is to compare the operating cash flow with your net profit. If the net cash from operating activities is equivalent to your net profit, it generally shows that your profits are supported by cash. In simple terms, a company’s cash cycle for any period can be

Many people taken up bank loans because they need monies urgently for the period but they sometimes forget that the monies they borrow have to be repaid in full on top of the interest payments per month. In our experience in this field, we have seen many companies fail because they could not repay the

In the past there are many financial crisis that threatened the market. In this article, we will discuss on a company whether should concern on profit earning or cash generating. Profit is not equal to cash. A company can making huge profit but with negative cash flow. A company can easily make profit by selling