Tag Archives: financial measurements

are “trusted” employees stealing from your business ?

in our many years of working with Small and Medium companies we have seen some shocking examples of so called “trusted” employees being dishonest and sometimes defrauding their employer. As a business grows, the founders inevitably rely on ” trusted” employees to perform critical tasks and lose the hands-on control of all that happens in their business. This provides an opportunity for some employees to take advantage of their position of trust and invariably defraud the company and compromise their jobs as well as the Continue reading →

How productive is your business

Despite the numerous financial ratios and analysis available to measure the business performance, we have found that operating cycle is the single measure that enables understanding of how quickly you are transforming your resources into cash. OPERATING CYCLE is the sum of Stock Turnover and Debtor Collection. This measure should be consistently monitored and improving the speed at which you turn you stock into cash the less working capital you require and the quicker you can grow the business. In our next post, we will Continue reading →