OPERATIONS' FINANCIAL INSIGHTS
Reduce Opportunities To Lose Money
My goal in sharing my insights is to equip you with knowledge that helps safeguard your financial well-being. By exploring financial strategies supporting operations, you’ll be better equipped to understand how management decisions are influenced by budgetary planning and financial analysis – to carryout: projects, start new endeavors, &/or expand existing product-services.
Breaking my content into two primary categories:
- Reporting (accounting) and financial analysis
- Capital investment strategies, risk, and uncertainty
Reporting (accounting) and Financial Analysis
- Operations accounting – reporting on transaction activities
- Books: accrual accounting, government/tax accounting, & personal expenses
- Report cards: balance sheet, income statement, & cash flow statement
- Depreciation of assets: useful life, obsolescence
- Basis: capital gains/losses on investments, or assets
- Financial analysis – measuring the activity metrics
- Scorecards: effectiveness, efficiency, & productivity
- Cost analysis
- Estimations
- Replacements
- MARR (minimally acceptable rate of return) aka “hurdle rate”, or “cutoff rate”
Capital Investment Strategies, Risk, & Uncertainty
- Investment strategies
- Money has time value
- Equivalent worth & alternatives
- Rates of return
- Economic value added (EVA)
- Price changes: inflation / deflation
- Risk & Uncertainty
- Risk: probabilities of alternative possibilities are known
- Uncertainties: frequency distributions of possible outcomes are not known
- Examples: business model, concentration, leverage, excess capacity, & sustainability
- S.W.O.T.
- Strengths: internal to your business
- Weaknesses: internal to your business
- Opportunities: external to your business, your environmental factors
- Threats: external to your business, your environmental factors
For in-depth explorations into operations’ financial insights, explore expanded and enhanced content on the ‘Resources‘ pages:
{Note: To ease your experience, pages will be linked here as content is posted.}
- Blogs
- Documentation (FAQs, How To Guides, Case Studies, & Technical References)
- Tutorials
- Tech & Gear
