Monthly Financial Analysis for Business Owners Menu

Key Financial Metrics

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 […]

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 […]

National Revenue Matrix – How Does Your Business Compare?

Business owners would be well-served to know where they fit in the realm of revenue size to other businesses in the U.S. Many of us have seen the statistic that there are around 25 million businesses in the U.S. This number is misleading. It includes every potential, small sole proprietor business in the country. A […]