Powerful Execution
Starting a business comes with never ending obstacles on the path. For example, has this ever happened in your business: You are passionate, ethical and
Starting a business comes with never ending obstacles on the path. For example, has this ever happened in your business: You are passionate, ethical and
Imagine You leave a comfortable job to start a business. Your boss discourages you from doing it. You start the business from your garage. Nobody
Net Profit % before/after Tax = Net Profit before or after Tax /Sales Net Profit % before/after Tax shows the profit per R1 of sales
Gross Profit % is also known as Gross Margin % Gross Profit % = Gross Profit / Sales Higher the gross profit %, higher the
Gross Profit Less Operating Expenses = Net profit before tax Less Tax = Net Profit after tax Net Profit shows the profit, after all expenses,
Sales Less Cost of Sales = Gross Profit Gross Profit excludes operating expenses, interest and taxation Gross Profit shows the profit after deducting direct costs
When business secures debt, there are legal obligations between the parties. If the business does not fulfil those obligations, for example, making timely payments, the
Current & Long Term Debt Current portion of long term debt: amount payable in the next financial year (following 12 months) Long term debt =
Debt-Equity Ratio Ratio: Total Debt / Total Equity = % The higher the debt-equity ratio, the higher the risk of the business Ratio rises/falls if
Debt versus Liability A provider lends an amount to the business & there is obligation to repay the debt Liability – ALL obligations, something owed
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