Why profit is not the same as cash
A profitable month can still leave the bank account under pressure.
FINANCIAL CONCEPTSUnderstand the concept.
Understand the concept.
Make a better decision.
Plain-language guides for founders, SMEs and finance teams. Each connects a financial idea to a worked example, a management question and a practical next step.
Understanding the working-capital cycle
Connect customer collections, stock and supplier payments to cash tied up in operations.
How to build a useful 13-week cash forecast
Make near-term cash decisions using dated receipts, commitments and explicit assumptions.
EBITDA, adjusted EBITDA and earnings quality
Understand the measure, reconcile adjustments and avoid treating earnings as cash.
Enterprise value versus equity value
The value of the operating business and the value attributable to shareholders are different questions.
Budget vs actual: from variance to action
Explain the business driver behind a difference instead of restating the percentage.
Margin, markup and contribution
Three related measures answer different pricing and profitability questions.
Break-even and margin of safety
Estimate the sales needed to cover a defined cost base, then test the assumptions.
Customer concentration: more than a revenue percentage
Understand how a small number of customer relationships could affect cash, margin and continuity.
Debt service and covenant headroom
Track the contractual test and the cash payment schedule as separate obligations.
Capex decisions: NPV, IRR and payback
Evaluate the timing and risk of incremental cash flows before approving an investment.
What makes a CFO management report useful?
A decision-oriented pack connects evidence, interpretation and follow-through.
START WITH ONE FINANCIAL QUESTIONFind the right product
Find the right product
for your next decision.
Explore a free tool, or talk through your data and priorities with ClearCFO.