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Financial Fundamentals (Causes & Effects)

  • Writer: Ed Patton
    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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