How to Evaluate Your Company’s Financial Position

by Victor Cheng

Yeah, yeah… here I go again harping on the importance of financial management. And ya know what? I’m going to KEEP harping on it it because it is just that important.

In fact, I’ve been harping so much on this topic that I was interviewed by a reporter from Inc magazine about it.

In the following Inc magazine article, play close attention to the emphasis I place on cash management.

Many CEO’s are sales oriented. The more financially sophisticated ones are EBITDA or net profit oriented. The most sophisticated ones are also cash flow oriented.

The 3 are NOT the same thing.

Unfortunately, many newer CEOs that have not been through a severe recession are discovering the nuance differences between sales, profits, and cash flow via painful real-world experiences.

Here’s the link to the article – very appropriately titled:

How to Evaluate Your Company’s Financial Position

 

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