Days Payable Outstanding (DPO): The Complete Guide to Measuring and Optimizing Payment Cycles
Days Payable Outstanding measures the average number of days a company takes to pay suppliers. This guide covers the DPO formula (Average AP ÷ COGS × Days), industry benchmarks from 15 to 70 days, the 37% annualized return from 2/10 net 30 discounts, and seven strategies to optimize payment cycles without damaging vendor relationships.
Sales-to-AR Ratio: The Cash Flow Metric Quietly Strangling Small Businesses
The sales-to-AR ratio measures the share of revenue stuck in unpaid invoices. This guide explains how to calculate it, what good looks like by industry, and how to drive it down within one or two quarters.
Days Sales Outstanding (DSO): A Practical Guide to Faster Collections
Days Sales Outstanding measures the average days it takes to collect on credit sales. This guide covers the DSO formula, 2026 industry benchmarks from 7 to 90 days, and concrete tactics to shorten the cash collection cycle.
The DSO Formula: How to Measure (and Fix) the Gap Between Sales and Cash
Days Sales Outstanding measures the average days between a credit sale and cash collected. This guide covers the DSO formula, industry benchmarks (30-45 days is typical, single digits for e-commerce, 60-90 for construction), common miscalculations, and seven practical levers to lower it.
Year-Over-Year Growth: The Formula Every Business Owner Needs to Master
Learn how to calculate year-over-year (YOY) growth with the simple formula, real-world examples, and practical tips. Understand when to use YOY vs. MOM vs. QOQ, which metrics to track, common mistakes to avoid, and industry benchmarks for healthy growth rates.
Current Ratio: What It Is, How to Calculate It, and Why It Matters
Learn what the current ratio is, how to calculate it, and what a good ratio looks like for your industry. Includes formulas, a worked example, comparisons with the quick ratio and cash ratio, and practical strategies to improve your business liquidity.
Burn Rate: What It Is, How to Calculate It, and Why It Matters
Learn what burn rate is, how to calculate gross and net burn rate, and why this metric is critical for startups and small businesses. Includes formulas, stage-by-stage benchmarks, common mistakes, and strategies to extend your cash runway.
Business Valuation: How to Determine What Your Company Is Worth
Learn how to determine what your business is worth using the four main valuation methods: asset-based, earnings multiple (SDE/EBITDA), market-based, and discounted cash flow. Includes formulas, industry multiples, and tips to increase your company's value.
EBITDA: What It Is, How to Calculate It, and Why Your Business Needs It
Learn what EBITDA is, how to calculate it with step-by-step examples, and why this key financial metric matters for business valuation, investor comparisons, and operational performance analysis.
How to Calculate Full-Time Equivalent (FTE) for Your Business: A Complete Guide
Learn the importance of calculating Full-Time Equivalent (FTE) for your business, a crucial metric that helps you understand your workforce capacity by converting employee hours into equivalent full-time workers.