Remove Accounting Remove Concentration Remove Profit and Loss Remove Sales
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How to mitigate insolvency risk

Future CFO

Declining profitability: For example, are your sales lower or your cost of goods sold higher? Poor interest coverage ratio: This shows operating profits may not be able to cover interest expenses. There is also the natural climate to take into account. Weakened balance sheet. Operating margins: Are they becoming thinner?

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What is Quality of Earnings?

CFO Share

QOE reports go beyond the balance sheet and profit and loss statement – they challenge the underlying data through rigorous testing and management interviews to assess accuracy, and risk. Sellers order a Quality of Earnings report before soliciting buyers to uncover any problems that might disrupt the sale.

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A Key Task for Finance – Measuring and Managing Customer Profitability

Planful

To remain competitive, companies must determine how to keep customers longer, grow them into bigger customers, make them more profitable, serve them more efficiently, and acquire more profitable customers. Today in many companies there’s a wide gap between the CFO’s function and the marketing and sales function on this issue.

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Breach of Trust: Decoding the Banking Crisis

Musings on Markets

A bank collects deposits from customers, offering the quid quo pro of convenience, safety and sometimes interest income (on those deposits that are interest-beating) and either lends this money out to borrowers (individuals and businesses), charging an interest rate that is high enough to cover defaults and leave a surplus profit for the bank.

Banking 76
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Customer Concentration

CFO Simplified

But if those people hold the key to 75% of your sales, you may be at risk of having too many of your eggs in one basket. Even though it’s easier to expand your sales with an existing client, it also may create additional risks that you might not be willing (or financially able) to take. How many customers account for 80% of your sales?

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The Sharing Economy come home: The IPO of Airbnb!

Musings on Markets

While the concept was heavily promoted, it has been slow to take off, with only $10 million in sales in 2017, but Airbnb has not given up, hiring Catherine Powell, a Disney theme park executive in 2020, to revamp the business.

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Data Update 1 for 2021: A (Data) Look Back at a Most Forgettable Year (2020)!

Musings on Markets

While the universe of companies is diverse, with approximately half of all firms from emerging markets, it is more concentrated in market capitalization, with the US accounting for 40% of global market capitalization at the start of the year.