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The 5 Elements of Financial Fundamentals (Brevity-Led Financial Reality)
The 5 Elements® of Financial Fundamentals developed by the Trender® Platform conveys a business' full financial profile with only 5 numbers. This is enlightening. Compare this to the common flood of data from accounting details and traditional financial reports – graveyards where financial insights and reality go to die. Cut through the financial data fog with the 5 Elements and comprehend your business's full financial profile in only a few minutes. _____________________
Ed Patton
1 min read


Bridge Financial Targets to Business Reality
Think of financial fundamentals (FF) as financial targets expressed in clear and concise dollar amounts. When FF are tracked in a commonsense way, business reality is easy to compare to these targets. Those responsible for results must clearly understand the company’s financial realities…and their relationships to desired outcomes. Tie together accounting details/financial reporting with business reality and how reality syncs with desired outcomes. Understanding financial
Ed Patton
1 min read


Financial Clarity Over Confusion (It’s About Time!)
If your company’s financials confuse you, it’s probably not your fault – it’s the outdated reporting methods still commonly used. Traditional financial reports often overwhelm readers with complexity, jargon, and noise, leaving even the most experienced business leaders unsure of what really matters. The Trender® Reports change this dynamic: By delivering the 5 Elements® of Financial Fundamentals in a simple, jargon-free format, the Trenders turn complex, confusing data int
Ed Patton
1 min read


Understanding What Causes Increases or Decreases in Working Capital
Working capital is a sound measure of a company’s financial health. Working capital is easily calculated: Current assets minus current liabilities = the amount of a company’s net working capital. Many business leaders and their advisers do not understand, and therefore do not report, the drivers of changes in working capital. A primary reason for this is that the focus is often on changes in working capital components while overlooking the drivers that change the amount of
Ed Patton
2 min read


Liquidity in Dollars: A Better Way to Measure Financial Strength
Financial statements are prepared in dollar amounts – not percentages. So why is this script flipped when analyzing liquidity? Business leaders naturally think in dollars. When reviewing performance, they ask: "Did we make $25,000 or lose $200,000?" not "Did we achieve a 15% margin, etc?" Dollar amounts provide immediate, tangible context that percentages cannot. Yet when assessing a company's liquidity – arguably the most critical metric for survival – there's a confusing
Ed Patton
2 min read


Explaining Financial Basics – Dunning Kruger Effect
Leaders of many small to mid-sized businesses (SMB) are not provided with clear and concise financial basics. This is not healthy. Leaders need to know if their time and money are well spent — and have the clarity to evaluate results and to decide what’s next. Their accounting or financial professionals should ensure business fundamentals are clearly understood. Accounting and financial professionals often underestimate how the Dunning–Kruger effect contributes to confusi
Ed Patton
3 min read
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