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Aug 27 โ€ข 6 tweets โ€ข 2 min read Twitter logo Read on Twitter
Do you know the difference between Gross Profit, Net Income, EBITDA, and Cash Flows?

Learn all about it over here ... Image
๐—š๐—ฟ๐—ผ๐˜€๐˜€ ๐—ฝ๐—ฟ๐—ผ๐—ณ๐—ถ๐˜

This is the amount thatโ€™s left over from your revenue after you subtract the cost to deliver your product or service Image
๐—ก๐—ฒ๐˜ ๐—ถ๐—ป๐—ฐ๐—ผ๐—บ๐—ฒ ๐Ÿ’ฐ

This is the net profitability of your business for a specific period of time - IE all income less all expenses Image
๐—˜๐—•๐—œ๐—ง๐——๐—”

Earnings Before Interest Tax Depreciation Amortization

Commonly used for valuations, and approximating free cash flows Image
๐—–๐—ฎ๐˜€๐—ต ๐—™๐—น๐—ผ๐˜„๐˜€ ๐Ÿ’ธ๐Ÿ’ธ

This is the net cash balance change from one period to the next

It's shown on the Statement of Cash Flows Image
๐—”๐—ป๐—ฑ ๐˜๐—ต๐—ฎ๐˜'๐˜€ ๐—ฎ ๐˜„๐—ฟ๐—ฎ๐—ฝ!

๐—œ๐—ณ ๐˜†๐—ผ๐˜‚ ๐—ฒ๐—ป๐—ท๐—ผ๐˜†๐—ฒ๐—ฑ ๐˜๐—ต๐—ถ๐˜€, ๐—ฐ๐—ผ๐—ป๐˜€๐—ถ๐—ฑ๐—ฒ๐—ฟ:

๐Ÿญ. ๐—™๐—ผ๐—น๐—น๐—ผ๐˜„๐—ถ๐—ป๐—ด ๐—บ๐—ฒ @๐—ฌ๐—ผ๐˜‚๐—ฟ๐—–๐—™๐—ข๐—š๐˜‚๐˜†

๐Ÿฎ. ๐—๐—ผ๐—ถ๐—ป๐—ถ๐—ป๐—ด ๐—บ๐˜† ๐—ป๐—ฒ๐˜„๐˜€๐—น๐—ฒ๐˜๐˜๐—ฒ๐—ฟ yourcfoguy.com/newsletter

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More from @YourCFOGuy

Aug 24
The Excel Formulas Cheat Sheet

This cheat sheet contains close to every formula Iโ€™ve ever used in Excel ๐Ÿ‘€๐Ÿ˜ฎ

Letโ€™s walkthrough the different categories, and when to use each... Image
โžก๏ธ SUM

These are fairly simple - they allow you to sum values in a range Image
โžก๏ธ LOOKUPS

These are really common โ†’ they return a value that you enter into your lookup formula

*Note: there's no reason to use vlookup anymore! Image
Read 15 tweets
Aug 23
๐Ÿฎ๐Ÿฒ ๐—ฒ๐˜…๐—ฎ๐—บ๐—ฝ๐—น๐—ฒ๐˜€ ๐—ผ๐—ณ O๐—ฝ๐—ฒ๐—ฟ๐—ฎ๐˜๐—ถ๐—ป๐—ด E๐˜…๐—ฝ๐—ฒ๐—ป๐˜€๐—ฒ๐˜€

Operating Expenses are the costs are associated with running your business

let's dive into each... Image
1๏ธโƒฃ Advertising & Marketing
2๏ธโƒฃBank Charges & Fees Image
3๏ธโƒฃConferences & Events
4๏ธโƒฃDues & Subscriptions Image
Read 15 tweets
Aug 22
๐Ÿญ๐Ÿฏ ๐—–๐—ฎ๐˜€๐—ต ๐—™๐—น๐—ผ๐˜„๐˜€ ๐—™๐—ผ๐—ฟ๐—บ๐˜‚๐—น๐—ฎ๐˜€๐Ÿ’ต๐Ÿ’ต๐Ÿ’ต

Follow along in this thread for an in depth dive on each of them ๐Ÿ‘‡ Image
1. Operating Cash Flow (OCF)

Formula โ†’ OCF = Net Income + Depreciation + Amortization + Other Non-Cash Items - Changes in Working Capital

What it means โ†’ A measure of a company's cash inflows and outflows from its primary business activities. Image
2. Free Cash Flow (FCF):

Formula โ†’ FCF = Operating Cash Flow - Capital Expenditures

What it means โ†’ Free cash flow measures a company's cash flow available for distribution to its investors or for future investments. Image
Read 15 tweets
Aug 21
๐Ÿญ๐Ÿฐ ๐—™๐—ถ๐—ป๐—ฎ๐—ป๐—ฐ๐—ถ๐—ฎ๐—น ๐—ฅ๐—ฎ๐˜๐—ถ๐—ผ๐˜€ & ๐— ๐—ฒ๐˜๐—ฟ๐—ถ๐—ฐ๐˜€ (๐˜„๐—ถ๐˜๐—ต ๐—ฑ๐—ฒ๐—ณ๐—ถ๐—ป๐—ถ๐˜๐—ถ๐—ผ๐—ป๐˜€ & ๐—ณ๐—ผ๐—ฟ๐—บ๐˜‚๐—น๐—ฎ๐˜€)

Let's dive into each one: Image
1๏ธโƒฃ Debt-to-Equity

Definition: A company's total debt to its total shareholder equity

Formula: Total debt / Total equity

2๏ธโƒฃ Gross Margin

Definition: A company's Gross Profit displayed as a % of its Revenue

Formula: Gross Profit / Revenue Image
3๏ธโƒฃ Operating Margin

Definition: The percentage of a company's revenue that is left over after deducting its operating expenses

Formula: Net Operating income / Revenue Image
Read 16 tweets
Aug 19
๐Ÿญ๐Ÿฌ ๐—ž๐—ฃ๐—œ๐˜€ ๐—˜๐˜ƒ๐—ฒ๐—ฟ๐˜† ๐—–๐—˜๐—ข ๐˜€๐—ต๐—ผ๐˜‚๐—น๐—ฑ ๐—ž๐—ป๐—ผ๐˜„: Image
๐—–๐—ฎ๐˜€๐—ต ๐—•๐˜‚๐—ฟ๐—ป โžก๏ธ How much cash your business is consuming Image
๐—–๐—ฎs๐—ต ๐—ถ๐—ป ๐˜๐—ต๐—ฒ ๐—•๐—ฎ๐—ป๐—ธ ๐—ฎ๐—ป๐—ฑ ๐—–๐—ฎ๐˜€๐—ต ๐—ข๐˜‚๐˜ ๐——๐—ฎ๐˜๐—ฒ Image
Read 9 tweets
Aug 12
The CFO Tech Stack

After working with 100+ companies in my career...

I've tried just about every tool out there.

These tools will help you do your job:
โ†’ with more accuracy
โ†’ with more efficiency
โ†’ with less resources

Let's do a walk through each category๐Ÿงต Image
Accounting & ERP

Let's start with the most relevant software - your Accounting Software / ERP

I see a lot of companies start off with QBO...

and I'm generally a big fan

Once you get sophisticated enough, you can move to Netsuite

These 2 dominate this space https://t.co/LPcsRa2d7Itwitter.com/i/web/status/1โ€ฆ
Image
Payroll & HRIS

Next must have tool is your payroll & HRIS platform

No one processes payroll by hand these days

My favorite is Justworks & Rippling, as they both are a PEO, saving you tons of headache

Gusto is a good option if you want cost savings, but not an ERP https://t.co/4KX97I7aPbtwitter.com/i/web/status/1โ€ฆ
Image
Read 12 tweets

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