When firms look for maximizing their value, they compare their performance with that of other firms in the same industry and evaluate the trends of the firm’s financial position over time. Financial statement analysis helps managers predict future earnings, dividends and free cash flow. Analysts use financial ratios to derive important information about the relationships … Read more
ETFs (Exchange-Traded Funds) which can be traded like stock at any time during market hours, have low expense ratios, have less risk than individual stocks, do not have some of the tax disadvantages of a regular mutual fund, do not pool investor capital, and are constructed so they are far less susceptible than “standard” mutual … Read more
Sales turnover and net profits may follow a rollercoaster pattern familiar to most business but when the cash flow dries up the game is over. Cash flow management is critical not just to business performance but to business survival in the days and months of a credit crunch. Accounting software can offer many solutions but … Read more
Capitalism has been the economic system used in the United States for generations. The United States economy and lifestyle, is based on these capitalistic principles. A company that pursues a risky and dangerous business model, and is not profitable will likely close, file for bankruptcy (Chapter 7 or Chapter 11) or forced to secure new … Read more
If you are a real estate investor who is about to sell a property and use that money to purchase more real estate, make a 1031 Exchange instead of just selling outright. Making every dollar work for you compounds your wealth. Anytime you don’t compound your wealth, you have missed an important opportunity. A 1031 … Read more