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Jul 17 • 9 tweets • 2 min read
Most financial statements tell you what's already happened.
But not the cash flow statement...
Here's why:
This one tells you what's coming.
Let's break it down.
Here are 10 signs your cash flow statement is waving giant red flags:
Jul 17 • 8 tweets • 2 min read
The best strategic finance dashboard fit's on a single page.
Connecting everything.
Changing how CEOs lead their companies.
Here's why this matters:
Most financial models are bloated.
Dozens of tabs.
Disconnected assumptions.
Endless complexity.
But complexity isn't strategy.
It's a liability.
Most models focus on tracking the past instead of driving the future.
A real strategic finance model does the opposite:
Connects operations, cash flow, valuation, and investment decisions all in one dynamic system
Jul 16 • 7 tweets • 2 min read
Stop thinking cash flow is "just one number."
Here are 12 critical cash flow insights every CEO and CFO must master
Let's break it down:
1. Operating Cash Flow (OCF)
Cash generated by day-to-day operations.
A truer measure of business health than net income. 2. Investing Cash Flow (ICF)
Cash used for or generated by investments.
CapEx, acquisitions, and asset sales live here.
3. Financing Cash Flow (FCF)
Shows how the company raises and repays capital.
Debt, equity, dividends it's all here.
Jul 14 • 8 tweets • 1 min read
Your P&L looks great.
Yet your company in trouble.
Most leaders glance at the P&L and move on.
You need to understand your cash flow.
Jul 14 • 6 tweets • 2 min read
Cash is not king.
Cash flow is.
But not if your system is failing you.
Most CEOs rely on lagging reports and instinct.
No forward visibility.
No integrated forecasting.
No real-time controls.
The strategy may not be broken.
But the cash flow system definitely is.
Here's how I'd fix that in 7 days:
Step 1: Build a 5+ Year Strategic Financial Plan
Tie capital structure to long-term goals
Align inflows and outflows with each growth stage
Step 2: Create a 12-Month Execution Roadmap
Jul 13 • 6 tweets • 2 min read
Profit is an accounting result.
Cash flow is a business outcome.
Here's why most leaders struggle...
Profit is easy.
It flatters the income statement.
It's hard to figure out.
And it exposes the business.
Here's what the P&L hides:
Non-cash items distort results
Capital spending drains liquidity
CapEx doesn't hit the income statement, but it hits your cash flow hard.
You look profitable while cash disappears.
Financing activity is invisible
Nov 23, 2024 • 13 tweets • 3 min read
What drives your cash flow?
There are 3 Main Cash Flow Drivers you should Know.
Operating Cash flows into your company from 3 main sources:
☑️ Revenue Growth
☑️ Operating Profits
☑️ Working Capital efficiency
How does it work?
Operating Cash Flow is the cash generated from a company’s core business activities.
Nov 22, 2024 • 9 tweets • 2 min read
The 4 Cs in CFO
The Chief Financial Officer role is all about Capital.
Capital Sourcing
Capital Allocation
Capital Reporting
Capital Management
1️⃣ Capital Sourcing:
o Diversify sources: Mix equity, debt, and alternative instruments to enhance financial stability.
o Build investor relationships: Cultivate connections with a diverse investor base to secure flexible funding options.
Nov 15, 2024 • 8 tweets • 2 min read
Budgets vs. Forecasts vs. Projections
They're not the same. And you probably need them all.
🎯 Budgets:
➡️ Align spending plans with revenue generation and strategic objectives.
➡️ Set the baseline for performance metrics.
➡️ Serve as a control mechanism for effective cost management.
🎯Forecasts:
Nov 12, 2024 • 13 tweets • 3 min read
Top 10 EBITDA Flaws You Should be Aware of and Beware
1️⃣ EBITDA is not a standardized GAAP metric, allowing for manipulation.
☑️ There's no standardized formula for calculation, leading companies to calculate it in a way that benefits them the most
Nov 11, 2024 • 9 tweets • 2 min read
Everyone is talking about SWOT, PESTEL, VRIO and Porter's 5 Forces.
But nobody is showing you how to use them.
Here's a checklist with 12 Essential Strategic Frameworks you Need to Know.
And the steps to take so you can actually use them in your organization.
⏬⏬⏬
➡️ Start with PESTEL Analysis
- Scan your macro environment.
- Evaluate political, economic, and other pivotal factors.
- Assess broad influences that can shape your business direction.
➡️ Dive into Porter's Five Forces
- Analyze your competitive landscape.
Nov 8, 2024 • 12 tweets • 3 min read
The 8 Critical EBITDA Drivers Leaders Must Know
EBITDA is also widely used in Valuations, Performance Management, Comparative Analysis and Commercial Financing.
So if you want to improve this metric, avoid making those mistakes, and manage these 8 critical drivers:
1️⃣ Revenue Growth
Nov 7, 2024 • 14 tweets • 3 min read
Top 10 Excel features for CFOs
10x your productivity and impact with my Excel power cheat sheet.
I spent thousands of hours in Excel and built lots of complex models.
But I use Excel for financial intelligence and strategic decision making,
To help my clients drive their desired results, financing & valuations.
Nov 6, 2024 • 10 tweets • 2 min read
Profit is not Cash Flow
>> There are 3 types of business activities and each of them can absorb or release cash into a business.
♦️ operating activities
♦️ investing activities
♦️ financing activities
>> Here’s what you need to know about ♦️ cash flow from operating activities:
Oct 26, 2024 • 8 tweets • 2 min read
NOPAT vs. EBIT
Which one should you use?
How are they different?
Do you need both?
🎯NOPAT and EBIT are frequently used to evaluate a company's profitability.
However, they are calculated differently and serve distinct purposes.
↪️ NOPAT (Net Operating Profit After Tax) represents a company's operating profit after tax deductions.
Oct 25, 2024 • 8 tweets • 2 min read
Your Business Problems have Solutions.
Here’s how to find them.
Most business problems fall into one of 3 main areas:
1️⃣ Profitability
2️⃣ Cash Flow
3️⃣ Growth
Use financial analysis techniques to identify and address them.