Category: Uncategorized

If your small business has inventory, knowing how fast it is selling will help you better understand the financial health of your business. Here’s why inventory turnover ratio is important and how to calculate it.  What Is The Inventory Turnover Ratio? The Inventory Turnover Ratio, or ITR (a.k.a. stock turnover ratio) measures the number of times a business sells and replaces its inventory over a certain period.  A higher turnover ratio means that a company is selling more and replacing… Read More

If you’re worried about the potential impact of a recession on your small business, you’re not alone. Business owners are bracing for an economic downturn, with no idea when that may happen or how bad it may be. Eight in ten small business owners believe the economy will enter into a recession this year, according to The CNBC|SurveyMonkey Small Business Index Q2 2022 survey.  CEOs of larger businesses surveyed by The Conference Board were slightly less pessimistic. Nearly 60% said they expect the… Read More

A small business needs cash to operate, and that cash often relies on your customers paying you in a timely manner. That’s where the days sales outstanding (DSO) formula comes in. Your business’s DSO value tells you the average number of days it takes to get paid for a credit sale. In this article, we break down how to calculate DSO and why it matters for your small business. What Is Days Sales Outstanding (DSO)? Days sales outstanding is a… Read More

Cash is tight for many small businesses as they navigate the changing economy during coronavirus. One option for helping to improve your cash flow and protect your credit is to get a loan deferment. This allows you to stop making loan payments for a period of time while you help your business get back on track.  Can you defer your small business loan? And should you? Let’s look at both questions.  Deferment Vs. Forbearance First, it’s important to understand the… Read More