Business financial analysis
Why a Profitable Company Can Run Short of Cash
Before taking an owner withdrawal or buying equipment, reconcile profit to cash and test whether the next payment calendar stays funded.
Financial education
Business financial analysis
Revenue, margins, working capital and the cash a business actually uses.
Analysis & practical guides
60 articles
Business financial analysis
Loss-Allowance Roll-Forwards: When a Smaller Reserve Does Not Mean Better Collections
Reconcile provisions, write-offs and acquired balances to explain why a shrinking allowance can coexist with rising credit-loss expense.
Business financial analysis
Customer Cohorts: How Expansion Revenue Can Conceal a Shrinking Customer Base
Separate churn, contraction, expansion and new customers, then test whether retention depends on a few expanding accounts.
Business financial analysis
Backlog and Remaining Obligations: Testing How Much Demand Is Actually Committed
Partition an order book by cancellation rights, release requirements and delivery timing before treating it as future sales.
Business financial analysis
Seasonal Liquidity: Why a Strong Year-End Balance Can Hide Peak Borrowing
Reconstruct the funding trough between reporting dates and test delayed receipts against a defined cash floor and available facility.
Business financial analysis
Equity Compensation Economics: Reconcile Awards, Repurchases, and Cash Pay Alternatives
Distinguish reported award expense, share replacement cash and hypothetical salary substitution without charging the same compensation twice.
Business financial analysis
Customer Concentration: Stress Lost Contribution and Existing Receivables Separately
Measure the profit and liquidity consequences of one customer reducing purchases while delaying payment, without double-counting the same exposure.
Business financial analysis
Segment Profit Reconciliation: Follow Internal Sales and Unsold Inventory to the Group
Reconcile segment revenue and profit without mistaking intersegment turnover or deferred internal margin for external business growth.
Business financial analysis
Non-GAAP Peer Comparisons: Rebuild a Common Adjustment Basis Before Ranking Profit
Show how different exclusion policies can create, erase or reverse an apparent earnings advantage between two otherwise comparable reporting sets.
Business financial analysis
Organic Revenue Bridges: Match Acquisitions, Disposals, and Currency to the Same Business
Rebuild comparable revenue growth with a matched prior-year denominator and show why subtracting acquisition sales alone can still mislead.
Business financial analysis
Contract Assets: Reconcile Recognized Work Through Billing Gates and Cash Collection
Track conditional payment rights separately from receivables and show why moving an amount to invoices does not by itself release cash.
Business financial analysis
Deferred Tax Assets: When a Tax Benefit Raises Profit Without Funding Operations
Separate current tax, deferred credits and recoverability changes, then test the taxable-profit capacity assumed behind a larger asset.