Do you find your basic financial statement's confusing or hard to understand or maybe even intimidating?
A new method of reviewing and tracking a company’s financial information is called “Financial Fundamentals”.
Many people find that their traditional financial reporting causes confusion instead of clarity. Making decisions more difficult and, at times, less effective.
The Trender® Platform has demonstrated the value of using Financial Fundamentals in companies ranging in size from early stage to $100 million in sales. It has been the solution many business leaders needed for simplifying and clarifying their company's financial data.
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Business leaders benefit from having succinct financial fundamentals in everyday language.
"Financial fundamentals" are a new category.
Definition of fundamental fundamentals – consistent, objective calculation of, and conveyance of, a business’s full financial profile.
Financial fundamentals are the antithesis of arcane traditional financial statements and voluminous KPIs and metrics that can inundate and therefore dilute / confuse the effectiveness of a lot of financial reporting.
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Prior to, or in conjunction with, reviewing the specifics of the three basic financial statements & / or details of operations, etc provide business leaders with their company’s big financial picture.
(This provides an overall full financial & business context / perspective that enhances further in-depth analysis.)
Note…balance sheets and cash flow statements are important, but they may be seen as only pieces of paper with a lot of numbers on them, appear arcane, not well understood, and, therefore, they can be ineffective.
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Brevity enhances financial fundamentals’ effectiveness.
Challenge…condense a business’s financial statements and full financial profile into 5 objective numbers.
By effectively presenting the correct 5 numbers, businesses financially comprehend:
Where they have been
Where they are
Where they are going
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A company’s full financial profile, includes and conveys the following:
Cash flow
Earnings from operations
Capital components (this includes financial health; value; borrowing capacity)
These touch all aspects of the business - and, therefore, provides insights into and visibility of all aspects of the business.
Note…Cash flow and ops earnings drive the capital components (or...1. and 2. above drive 3.). Another way to think about this is that cash flow and ops earnings are a "means to an end"; and the capital components are the "end results".
(Many businesses only comprehend operating earnings or 2. above.)
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The Trenders effectively provides businesses with their company’s full financial profile in everyday language via the 5 Elements® of Financial Fundamentals.
For many businesses - there is not a shortage of data - there is a shortage of insights derived from succinct and understandable financial fundamentals.
The Trenders fill this financial-insights void.
It may seem counterintuitive, but brevity can expand financial & business knowledge.
Generating succinct financial fundamentals for businesses provides them with something important that they do not have.
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Reach out for an introductory call or Zoom to discuss how this can help the leaders of your business or your clients’ businesses.
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Edward B. Patton
5701 Broadway, Suite 102
San Antonio, Texas 78209
Phone (210) 822-9977
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