Simplifying finance....ย โขย 1m
A finance leader once said something that changed how I look at businesses. โWe were profitable on paper, but cash was always tight.โ Thatโs when the cash conversion cycle started making sense to me. A company may sell today, wait weeks or months to collect payment, hold inventory in between, and still need to pay suppliers on time. Profits look healthy, but cash stays locked up. Different businesses handle this very differently. Some collect cash quickly and pay suppliers later, letting growth fund itself. Others grow revenue fast but tie up cash for long periods, making expansion stressful. This is why rapid growth doesnโt always mean stronger finances. Understanding the cash conversion cycle helps separate businesses that survive from those that struggle, even when both look profitable on the surface.
Simplifying finance....ย โขย 1m
Two companies can report the same profit. Yet one constantly struggles with cash, while the other quietly builds a buffer. This used to confuse me until I started paying attention to how cash actually moves. Some businesses collect money quickly an
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Your Bottom Line Our...ย โขย 8m
๐ก Finance Tip of the Day: > โProfit is not cash. Donโt confuse the two.โ Many businesses look profitable on paper but struggle with cash flow. โ Track cash flow weekly, not just monthly. โ Watch for slow-paying customers. โ Profit wonโt pay your
See MoreSimplifying finance....ย โขย 2m
When I analyse businesses, free cash flow is the metric I trust the most. Profits can look strong on paper, but cash flow shows whether a company can actually fund growth, service debt, and survive tough cycles. What free cash flow quietly tells us:
See MoreSimplifying finance....ย โขย 2m
For a long time, I assumed that profitability meant safety. If a business was making money, I believed it was stable. Over time, I realised profit alone can be misleading. Many businesses fail not because they arenโt profitable, but because deeper i
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Hey, I'm on Medialย โขย 2y
Imagine a company's purchasing team negotiates amazing deals with suppliers, getting extended credit terms (like a long payment deadline on your credit card). This frees up cash. But what if the sales team is so good they collect payments from cust
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Slower growth usually sounds like a warning sign. But when I look at profitable companies today, I see something different happening. Many strong businesses are deliberately easing growth to protect margins, cash flows, and balance sheets. FMCG comp
See MoreMarketing & Systems ...ย โขย 1y
๐ Why Revenue Modeling is Critical for Your Business โ Backed by Data ๐ Revenue modeling isnโt just a forecasting exercise โ itโs a roadmap for growth, stability, and innovation. Here's why it matters, with data to back it up: 1๏ธโฃ Predicts Future
See MoreIn God We Trust, The...ย โขย 10m
3 DIY Health Checks Every Founder Should Do Monthly 1. Cash Flow Pulse Check โ Ask: Did I collect more than I spent this month? โ If unsure, review bank statements & tally collections vs payments. Why it matters: Profitable on paper โ cash in bank.
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