Finance

How to Calculate the Break Even Point for Your Business

In business, it’s important to track your numbers so that you know when you’re making a profit and when you’re losing money. The break even point is the quantity of units of product or services that must be sold in order for the company to neither lose nor gain money. It is also known as the point of neutral cash flow, since at this point, the cash coming in from sales equals the costs going out for production and selling. In other words, how many units of a product can we sell to break even?

6 Ways to Maximize Automation and Excel in Financial Modeling

Modeling is a time-intensive process. Creating financial models can take days, weeks, or even months to complete. Without the right tools and techniques, modeling can also be extremely challenging. Financial modeling is an important part of any company’s financial management processes.

Unlevered Free Cash Flow: What is it and How to Calculate?

Unlevered free cash flow is an important tool for investors looking to understand the financial performance of a company. LPas are more often than not equity investors, meaning they invest in companies rather than buying and selling individual securities. However, that also means that LPs need information that goes beyond just how much money a company makes or spends.

Amortized Loans: A Brief Guide to Loan Types

When you take out a loan, you’ll be given a term for how long you need to make payments on it. Loan length is an important piece of information, because it will influence the type of loan that you choose. Generally speaking, longer loans require higher monthly payments for the lender. However, lenders offer shorter loans with lower monthly payments as well. The way in which those costs are broken up is what determines if a loan has amortized payments or not.

Cash Schedule: The Key to Managing Your Finances with Ease

Money is a nerve-wracking topic for many people. In reality, money isn’t that scary if you know how to manage your finances and keep track of your balance at all times. Cash management is the art of keeping tabs on what money you have available at any one time so you don’t overspend or dip into negative territory.

Understanding Depreciation: The 5 Components of Your Depreciation Schedule

Depreciation is an accounting term that refers to the gradual reduction in value of your assets. Since these assets are not indestructible, they must be recorded as losing value over time. Depreciation can seem like an obscure accounting concept, but it has a very real impact on your investment and its potential returns.