Cash Flow Academy

Cash Flow Forecasting

A cash flow forecast tells you how much money you expect to come in and go out of your business over a defined period. It is one o...

Working Capital

Working capital is the lifeblood of a trading business. It represents the funds available to run your day-to-day operations and is...

Debtor Days

Debtor days measures the average number of days it takes your customers to pay their invoices. It is one of the most important ind...

Creditor Days

Creditor days measures how long, on average, a business takes to pay its suppliers. Extending creditor days is a legitimate workin...

Cash Conversion Cycle

The cash conversion cycle (CCC) measures the number of days between paying for inputs (stock, materials, labour) and receiving cas...

Liquidity Ratio

Liquidity ratios measure a business's ability to meet its short-term financial obligations. They are one of the most important met...

Quick Ratio (Acid Test Ratio)

The quick ratio, also known as the acid test ratio, measures a business's ability to meet its short-term liabilities using only it...

Current Ratio

The current ratio is the most widely used liquidity metric in business finance. It compares a business's current assets against it...

Cash Flow Statement

The cash flow statement is one of the three core financial statements, alongside the profit and loss account and the balance sheet...

Profit vs Cash Flow

One of the most common misconceptions in business is that if a company is profitable, it must have healthy cash flow. In reality, ...

Aged Debtors

An aged debtors report shows you how much your customers owe you, broken down by how long each invoice has been outstanding. It is...

Credit Control

Credit control is the process of managing and collecting customer payments to minimise overdue balances and bad debts. An effectiv...