Financial Fundamentals (Causes & Effects)
- Ed Patton

- Jul 6
- 1 min read
Updated: Jul 17
Financial causes-and-effects.
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Two financial causes drive changes in three financial effects:
These are the 5 Elements® of Financial Fundamentals.
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Financial causes:
1. Cash flow
2. Operating earnings
Financial effects (business’ capital components):
3. Liquidity
4. Value
5. Borrowing capacity
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Many business leaders understand just one of the above five Financial Fundamentals…Operating Earnings.
The other four are commonly underreported — or not reported at all — to business leaders in a clear and concise manner.
This results in business leaders flying financially blind.
All five of these Financial Fundamentals are important and they are interrelated.
The Patton Trender® recognizes this age-old business pain point and solves it by providing clear and concise Financial Fundamentals.
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Edward B. Patton
5701 Broadway, Suite 102
San Antonio, Texas 78209
Phone (210) 822-9977





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