As entrepreneurs, yos should know how to do a Balance Sheet analysis using KPIs as it can help you to gain valuable insights about the health of your business. Today I shall be sharing some simple KPI as well as their importance; Working Capital Ratio or Current Ratio: compares your Current Assets to your Current […]
In Balance Sheet there is a lot of KPI (if you know what you are looking for). it will involve in a lot of simple math calculations; which means it is not something visible that you can spot. 1st of all, a key point in understanding Balance Sheet is that it is often hard to […]
Earlier we have gone thru the gross profit margin where the formula is : Gross Profit x 100% Total Sales Markups formula is slightly different: Gross Profit x 100% COGS Margins and markups interact in a predictable way. Each markup relates to a specific margin and vice versa. Markups are always higher than their corresponding […]
Yesterday we have gone thru the concept of COGS, right? Are you still confuse on what expenses should be classified as COGS or other Admin, Selling or Distribution expenses? If this is still too much to think, asking this question to yourself will help to identify if it is a COGS or other expenses; “Would […]
Cashflow management is an important aspect in any business. It is a process that tracks how much money is coming into and going out of your business Never take your eyes off the cash flow because it’s the life blood of business. (Richard Branson) Please complete the following field. The file/link will be send to your […]
Cost of Goods Sold (or COGS), also known as Cost of Sales; is a category of DIRECT expenses in producing the goods/services sold by a company. Examples of COGS the materials needed to assemble a product and the transportation needed to bring goods from a distributor to a retailer as well as direct labour costs […]
In calculating Gross Profits, 2 elements are critical. If you get these right then you shall see the GP margin as close to the actual situation. 1) Sales – this is the total of all the sales invoices (irrespective of whether the customers made payment to you) minus all discounts & returns from your customers. […]
In calculating Gross Profits, 2 elements are critical. If you get these right then you shall see the GP margin as close to the actual situation. 1) Sales – this is the total of all the sales invoices (irrespective of whether the customers made payment to you) minus all discounts & returns from your customers. […]
Basic understanding of Balance Sheet (B/S): 1) Non-Current Assets – This is a category u put in all ur fixed assets and investments in subsidiary/asso 2) Current Assets; this is where all liquid assets are categorized such as bank/cash balances, inventories, FD, trade/other debtors, investments in shares etc (where there is movements/changes within 12mths) 3) […]
In P&L there’s some basic info; 1) Sales / Revenue (in Bahasa it’s called Jualan / Perolehan) – this is the recorded sales ur company has made for the period. 2) Cost of Goods Sold (COGS) – it is a collection/classification of expenses that is used in producing the final product/services for sale. it includes […]
