4 ways to find and fix small business cash flow problems
TRANSCRIPT
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Nov. Sales $100 100%
Cost of sale $50 50%
Fixed costs $40 40%
Profit $10 10%
Nov. Sales $90
Cost of sale $50
Fixed costs $40
Profit $0
Nov. Sales $112.5
Cost of sale $62.5
Fixed costs $40
Profit $10
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Nov. Sales $100 100%
Cost of sale $50 50%
Fixed costs $40 40%
Profit $10 10%
Nov. Sales $110 100%
Cost of sale $55 50%
Fixed costs $45 41%
Profit $10 9%
10% higher fixed costs
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•𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐴𝑅 𝑂𝑣𝑒𝑟 𝑇ℎ𝑒 𝑌𝑒𝑎𝑟∗365
𝑇𝑜𝑡𝑎𝑙 𝑂𝑛−𝑐𝑟𝑒𝑑𝑖𝑡 𝑆𝑎𝑙𝑒𝑠
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DSO
Agriculture 19.00
Mining 52.00
Construction 43.00
Manufacturing
Leather/Textile/App 34.00
Chem. Petrol. Metal 48.00
Wood Related Prod 33.00
Trans-Communic 34.00
Wholesale
Non-Durable 39.00
Durable 31.00
Retail
Hardware 22.00
Gen. Merchandise 4.00
Automobiles 9.00
Apparel 2.00
Furniture 16.00
Restaurants 1.00
Financial Services 1.00
Business Services 42.00
Service Industry 15.00
http://www.creditguru.com/ratios/inr.htm
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Slice of Pizza $10
Cost of sale $2
Profit $8
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Profit Margin %
Agriculture 2.58
Mining 0.00
Construction 1.74
Manufacturing
Leather/Textile/App 1.64
Chem. Petrol. Metal 2.23
Wood Related Prod 2.16
Trans-Communic 1.84
Wholesale
Non-Durable 1.40
Durable 1.11
Retail
Hardware 1.11
Gen. Merchandise 0.16
Automobiles 0.84
Apparel 1.35
Furniture 0.92
Restaurants 0.43
Financial Services 1.29
Business Services 1.75
Service Industry 0.77