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  • Writer's pictureEd Patton

Parts and Pieces (of Business Financial Fundamentals)

Updated: Feb 3

Business’ financial components are numerous, complex and differ from company-to-company.

·        In other words, every company has a lot of financial pieces.


Many accounting and financial professionals are knowledgeable about all or most financial components / pieces.

·        While they understand the multitude of financial pieces, most do not put them together in a way that business leaders can grasp their companies’ full financial profile in a succinct and understandable manner.


Many advisors understandably focus on their particular area of expertise. This is important but often leaves out the vitally important insights derived from succinct and understandable financial fundamentals.

 ·        When complete financial fundamentals are provided in a succinct manner, leadership has their business’ ongoing full financial profile which improves the evaluation of results and strengthens strategic planning.




Think of a business’ traditional financial statements and supporting reports / schedules, etc as the pieces of a jigsaw puzzle.


Leaders are provided with lots of parts and pieces that, by themselves, do not provide a succinct and understandable full financial profile.

·        Putting these pieces together in a common sense manner provides a succinct and understandable full financial profile. 


One piece of the puzzle or multiple pieces of the puzzle dumped on the table from the box of pieces is not a clear and understandable picture. 

·        Clarity is provided when the pieces are properly put together.


The clarity and simplicity of a completed jigsaw puzzles’ picture is fun and rewarding; similarly, providing leaders with their business' full financial profile is a fun and rewarding part of accounting and financial services. 



The 5 Elements® of Financial Fundamentals via the Trender Platform®


Succinctly conveying a company’s complete financial profile requires the business’ financial fundamentals being:

·        Defined

·        Calculated

·        Summarized

·        Reported (in everyday language)


For years, PattonTrenders have successfully led this field by providing multiple businesses with their succinct and understandable financial fundamentals via the 5 Elements.


This was developed to address managements’ underserved needs of being provided with functional financial fundamentals that shows whether their capital and time have been well spent; and which provides insights for making more informed and confident business decisions.


Succinct and understandable financial fundamentals are a must-have for business leadership.


Companies need to have a succinct and understandable full financial profile because the financial fundamentals are just that – fundamental.


The 5 Elements of financial fundamentals provided by the Trenders are as follows:

  1. Cash flow (proprietary to Trenders)

  2. Financial health (re, liquidity) (proprietary to Trenders)

  3. Shareholder values

  4. Borrowing capacity

  5. Operating earnings - summarized with trends 


Learn more by reaching out to:


Edward B. Patton

5701 Broadway, Suite 102

San Antonio, Texas 78209

Phone (210) 822-9977

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