Understand Financial Analysis

Investment Base: What is it? And why is it important?

The term investment base shows up most often in three financial contexts: sales of receivables, capital structuring, and valuations. In a sentence, investment base is an umbrella term used to reference the valuable portion, or net portion, of a pool of assets and liabilities. The reason we use the term “investment base” rather than “available […]

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What is Non-Cash Working Capital? 5 Reasons You Need It

Working capital is a critical concept in the world of finance, but few people understand how it differs from non-cash working capital. Those that do understand have a huge upper-hand in recognizing the strengths and weaknesses in a business and in making sound investments. In short, non-cash working capital is the difference between [current assets

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Revenue Drivers: 5 Growth Metrics & How to Analyze Them

The term “growth” in business spurs images of financial statements — items such as cash, assets, profits, and liabilities. While these on-balance sheet are fundamental to revenue growth, they ignore the biggest driver of all: off-balance sheet items, or items not listed on financial statements. For example, an e-commerce website’s loyal customers and strong relationships

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Financial Planning Methods: 3 Types & Excel Examples

Financial planning can make the difference between success and failure for companies in today’s dynamic markets. In most companies, Financial Planning & Analysis (FP&A) teams are responsible for outlining financial plans using an analytical toolbox to deliver consistent and flexible insights that feed the corporate decision-making process. Financial planning methods are the fundamental elements in

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Management Presentation: 8 Tips, Examples & a Template

In a corporate context, presenting works wonders for a career. Most professionals get exposure to presenting to informed colleagues and department managers. It’s an ideal way to get visibility and show value. But a management presentation to senior executives who aren’t familiar department nuances is a different ballgame. A management presentation is a high-level summary

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Senior Financial Analyst: What They Do to Earn That High Salary

Senior financial analysts (Sr financial analysts) earn $81,017 on average in the united states, while normal financial analysts, only $61,060. That’s an average increase of 32%.1 At the same time, it’s difficult to envision that senior analysts do significantly more than normal analysts, which begs the question: what does a senior financial analyst do? In

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What is a Corporate Treasury in Finance? 3 Goals, 7 Functions

Most professionals first hear of treasury departments as a branch of government, but it’s equally important in the financial operations of large companies. In fact, companies generating more than $10 million in revenue (SMBs) build Corporate Finance Departments that are typically split into into three areas: accounting, finance, and treasury. While most people understand the

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Financial Analytics: what is it & why is it important?

Financial analytics is a subcategory of financial analysis that takes place within a company rather than on Wall Street as an investor. More specifically, financial analytics seeks to understand 3 elements within a company: 1. its operations, 2. how those operations impact financial statements (FS), and 3. the company’s performance financial performance based on those

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