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Yahoo! Is Financially Poised for a Turn-Around – Our Analysis

Yahoo! might be running out of zip but I would not count it out of the race yet. Yahoo! still has financial resources and the ability to wring more cash flow out of its working capital. This company is still able to change course and become a force to reckon with again … but time […]

Facebook Financial Analysis – Potential Manipulation?

“Surprise, surprise!” as Private Gomer Pyle use to say. We knew, even before this pre-IPO analysis, that Facebook was bound to disappoint. Between their terrible implementation of critical financial concepts, an extremely inflated valuation, and too much hype over substance for too long, this was the killer trifecta. Online social interaction is an impressive thing […]

More and More Revenue is NOT the Answer

Annual revenue growth likely commands way too much of your attention as a business owner. Yes, without revenues there would be no business, but focusing on revenues without considering price changes can set up your business for failure. That’s why The Business Ferret calculates 12 key financial metrics including Real Revenue Growth, which accounts for […]

Excess Cash – What Is It and What To Do With It

Do you think it’s best to hold as much cash as possible? Most business owners think the more cash the better (Apple, we’re looking at you) but that’s not the best move. It’s best to either redeploy your cash in your business or take it out of the business to invest elsewhere, even if your […]

How Can Strategic Finance Help My Business?

Often a prospective client will ask how I can help him or her reduce risk and increase sustainable cash flow if I don’t know the ins and outs of their particular type of business. It’s a good question, but focuses on the wrong issues. Business is business no matter what you make or sell, and […]

When is Revenue Growth Real?

Recently, I read that a large, publicly traded clothing retailer was reducing prices in order to show a slim 5% revenue increase. In other words, the price reduction stimulated revenue growth by +5% while lowering the gross profit margin by -15%. This tells me that revenue increase is more important to this firm than gross […]