Category Archives: Profit margin

CAC, LTV, & LTV ratios measure recurring revenue business models' scalability, consulting CFO for small businesses. Rolf Neuweiler, A2ZCFO. (image: signing)

Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLV) – Part 1 of 2

By Rolf Neuweiler 02-28-2020

The CAC metric and other related metrics of CLV and CLV to CAC ratio are used to measure companies’ internal operation and investment in marketing and sales, as well as by investors to assess scalability of recurring revenue business models, especially fast growing internet companies such as subscription-based SaaS companies and e-commerce, web-driven businesses. The […]

Blog about revenue, gross, operating and net profits and profit margins by Rolf Neuweiler, consulting CFO. Rolf Neuweiler, A2ZCFO (image: reviewing profits)

Revenue and Profit Margins

Accounting Business Management Cash flow CFO Consulting Financial forecast Financial Statements Profit margin

By Rolf Neuweiler 09-30-2019

In our last blog, we talked about EBITDA and EBITDA margin, and stated that it is better to use both GAAP metrics and EBITDA to determine an organization’s financial health. Under the guidelines of GAAP (generally accepted accounting principles) requirements for corporate accounting, a profit margin is calculated using one of the three principles: gross […]

EBITDA

Accounting Business Management Cash flow CFO Consulting Financial forecast Financial Statements Profit margin Strategies

By Rolf Neuweiler 09-01-2019

What is EBITDA? EBITDA is the abbreviation for “Earnings Before Interest, Taxes, Depreciation and Amortization.” It is a measure of overall profitability of a business. How are EBITDA and EBITA margin calculated? EBITA = earnings before interest, taxes, depreciation, and amortization. EBITDA margin = EBITDA divided by total revenue. EBITDA and EBITDA margin help determine […]

Good bookkeeping & accounting practices help avoid financial and management pitfalls for a growing small business, Rolf Neuweiler, A2ZCFO (image: money pitfall)

Financial and Management Pitfalls for a Growing Small Business – Part 1 of 2

Accounting Budgeting Business Management Cash flow CFO Consulting Debt & Loan Management Financial forecast Financial Statements Financing Line of credit Loans Profit margin Strategies Taxes

By Rolf Neuweiler 01-29-2019

Part 1 of 2: PITFALLS FOR A GROWING SMALL BUSINESS In January 2019, I talked about financial and management pitfalls for growing small businesses at a professional networking group meeting. Here in Part 1 of the two parts, we first focus on each potential pitfall related to lacking strategic goals and skills. In Part 2 […]

Cash flow can be mitigated with finance solutions, lines of credit, & non-financing improvement of management systems. Rolf Neuweiler, A2ZCFO (image:chalkboard)

Cash Flow Problems and Solutions for Startups and Small Businesses (3rd of 3 parts)

Accounting Budgeting Business Management Cash flow CFO Consulting Debt & Loan Management Financial forecast Financing Line of credit Loans Profit margin Strategies

By Rolf Neuweiler 10-27-2018

This is the last of three parts about cash flow problems and solutions for small businesses. In Parts 1 and Part 2, we discussed seven preventive strategies for all businesses: 1.) Get accounting books organized. 2.) Use a cash-flow budget. 3.) Get customers to pay quickly. 4.) Rein-in unnecessary spending and stay alert to potential […]

Cash Flow Problems and Solutions for Startups and Small Businesses (2nd of 3 parts)

Accounting Budgeting Business Management Cash flow CFO Consulting Debt & Loan Management Financial forecast Profit margin Strategies

By Rolf Neuweiler 10-02-2018

This is the second of three blogs about cash flow problems and solutions, particularly relevant to startups, and also for small businesses. In Part 1, we discussed the first three of seven preventive strategies for all businesses: 1.) Get accounting books organized. 2.) Use a cash-flow budget. 3.) Get customers to pay quickly. Here in […]

Cash Flow Problems and Solutions for Startups and Small Businesses (1st of 3 parts)

Accounting Budgeting Business Management Cash flow CFO Consulting Financial forecast Profit margin Strategies

By Rolf Neuweiler 09-02-2018

This is the first of three blogs about cash flow problems and solutions for small businesses. Cash flow management is key for a small business to succeed About 82 percent of startups and small businesses fail due to poor cash flow management. Businesses experience cash flow problems when they cannot timely pay employee salaries and/or […]

Common Accounting Pitfalls for Small Businesses

Accounting Budgeting Business Management Cash flow CFO Debt & Loan Management Financial forecast Profit margin Strategies

By Rolf Neuweiler 07-24-2018

Common Accounting Pitfalls & Solutions for Small Businesses About 28 percent of companies go bankrupt due to problems with a company’s financial structure, according to a study undertaken by the Small Business Administration. Good bookkeeping and accounting practices not only can avoid many problems to make it easy for tax filings, new loans, and pitching […]