This article delves deep into the essence of cash flow, exploring its critical importance, the common pitfalls that disrupt it, and the practical, actionable strategies you can implement to ensure the lifeblood of your business flows freely and powerfully.
Posts tagged as “Net Cash”
This article is about costs and benefits of unemployment. Effects, both negative and positive, of unemployment, and natural rate of unemployment.
Mainly, stocks decline as the result of poor earnings, poor balance sheet and the share price being too high for the value (Net Cash Flow).
As all products have a very specific life cycle, Product Life Cycle (PLC) is the typical process that all products go through from birth to death.
The government can reduce inflation via monetary policy, fiscal policy or exchange rate policy. These are the major counter inflation policies.
Monetary policy is concerned with the money supply to the economy, interest and the amount of credit available to households and firms.
Internal Rate of Return (IRR) shows the actual percentage rate of return from the investment considering discounting.
Discounted Payback Period shows the time needed to earn enough profits to repay the original cost of the investment considering discounting.
Discounting is the process of bringing to the present value the future Net Cash flows that will occur during the lifetime of the project.
Average Rate of Return (ARR) gives the annual Net Cash Flows (or net profits) from a project as a percentage of the initial cost of the investment.
Payback Period (PBP) gives the length of time required for Net Cash Flows (or net profits) to pay back the initial capital cost of the investment.
No professional business manager can afford to ignore other qualitative factors of Investment Appraisal in addition to quantitative factors.
Investment Appraisal assesses attractiveness of different capital projects. Projects usually involve a high expenditure and cannot be reversed.
Investment is needed to earn profit for the business! Business organizations, both in the private sector and the public sector, make investment decisions.
Cash Flow Forecast helps to ensure that the Cash Flow position of a firm is carefully monitored to identify any potential problems before they occur.
The main aim when solving Cash Flow problems is to improve the cash position of the business, not to increase sales revenue or maximize profits.