Archives: Countly Learning
Current Ratio
Current ratio comes under as one of the types of liquidity ratio. It is considered one of the essential financial measures and also empowers businesses as well as stockholders to form a reasonable judgment with respect to investments. This guide will assist you in broadening your perspective about the ease of this particular liquidity ratio […]
Working Capital Management
When we talk about the crucial parts of any business for the management of the short-term assets and liabilities, then working capital management is considered the most. It straight-forwardly effects the liquidity of the company, operational effectiveness, and overall financial state. With the help of working capital, effectiveness in the management arises, due to which […]
Cash Conversion Cycle (CCC)
The Cash Conversion Cycle (CCC) is a crucial measure of how fast a business can turn its investments in inventory and receivables into cash. It tells you how quickly your business can move from spending money on raw materials to collecting payments from customers. Think of it as a race: the faster you can convert […]
Case Study: XYZTech Innovations – Surviving Cash Flow Chaos in the Space Race
XYZTech Innovations is quite different from the usual startup company. It was a tiny innovative company operating from Bengaluru, India, with dreams of launching mini-scale satellites and space vehicles for communication and planetary reconnaissance. Ambition fueled XYZTech’s journey to the stars after its founding in 2018. But the truth is, in 2023, it was on the […]
Case Study: Working Capital Management for Tata Motors’ Launch of the Nano (2008)
In the year 2008, Tata Motors launched the budget-friendly car “Tata Nano,” which became the world’s cheapest car. The goal is to provide the cars to the Indian families, mainly the lower-middle class, the more affordable with safer alternatives as compared to two-wheelers. At first, it is launched at a price of around ₹1 lakh […]
Case Study: Working Capital Management Amid the 2023 EV Investment Surge
The year 2023 was a complicated ride for the electric vehicle (EV) market. Governments provided significant subsidies for EV manufacture, and consumer demand skyrocketed. EV sales soared, but with them came significant hurdles. Automakers were struggling not just to satisfy demand, but also to manage working capital, which is the cash required to conduct day-to-day […]
Bank Overdraft Facility for Working Capital Finance
Running a business means keeping track of various financial numbers to stay stable and avoid chaos. One of the key things to manage is accounts receivable, especially for businesses offering credit to clients. This is where the Accounts Receivable (AR) Aging Report steps in, acting like a financial watchdog to keep your cash flow in […]
Working Capital Turnover Ratio
As an entrepreneur, it is required to be updated for the company’s working capital turnover ratio. If it is not analyzed properly on a regular basis, then that may cause disruptions in the cash flow for daily operations. By examining this financial measure, it gets easy to decrease the production blockage and keep the business […]
Working Capital Loans in India
Running a business is not all about generating profits. To maintain business continuity, an adequate amount of cash is required. Tasks like paying salaries, purchasing stocks, and managing bills—every single business requires constant cash flow. But the question arises: what happens when the business runs out of cash? Working capital loans are relevant in this […]
Trade Credit in India
In the changing world of business, managing cash flow efficiently becomes one of the primary challenges that a company can face. From small companies to large ones, businesses are required to maintain equilibrium between tasks like purchasing materials, maintaining enough stocks, and maintaining liquidity for daily operations. Trade credit has been instrumental in achieving this […]
Short term financing
In India, MSMEs are at pace. But this pace requires various choices of financial acquisition in order to face numerous challenges that will occur for sure. Sometimes immediate finances are required, so in that case, short-term finances are the option to rely upon. This guide will provide you the information to understand the various short-term […]
What is Working Capital? – Formula, Importance and Advantages
Working capital is considered one of the vital aspects that ensures the smooth activity of businesses related to any field. It is advisable to use working capital as a financial instrument to get a fair sense of the business for short-term financial stability. Working capital is simply the amount of liquidity that a business has […]
What is Inventory Management?
Inventory management isn’t some boring task you put off until last minute. It’s the backbone of a business, especially if you’re dealing with physical products. From managing stock in a small shop to keeping tabs on a warehouse of thousands of items, getting this right can make or break your business. If you don’t have […]
How to Boost Your Cash Flow: Simple Strategies to Keep Your Business Moving
Cash flow. Without it, a business can’t survive. You might be making sales and even showing profit on paper, but without solid cash flow, you’ll be stuck. Bills pile up, employees get paid late, and growth stalls. So, how do you fix this? Simple. You increase cash flow. Increasing cash flow isn’t magic. It’s all […]
Components of Working Capital
Properly understanding the components of working capital plays a huge part when we talk about handling business properly. The smooth running of daily operations and facing sudden unforeseen financial requirements can be met with the help of sufficient working capital. This all states that knowing about components of the working capital is very essential, as […]