Articles
Finance for managers, in plain English
Short reads from the finance side of the table: how to read the numbers you own, and what to ask in your next meeting.
- 10articles
- 3–6minutes each
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How to read a P&L statement: a manager's guide
How to read a profit and loss statement line by line: revenue, gross profit, operating expenses, EBITDA and net profit, with a worked example and five questions.
The P&L
What is EBITDA? The boardroom's favorite number, explained
EBITDA in plain English: what it means, how to calculate it from a P&L, and the three things it doesn't show. A guide for managers who aren't in finance.
Pricing
The true cost of a discount: the volume you need just to stand still
A 10% discount doesn't cost 10% of your profit. Learn how to calculate the extra volume a discount needs to break even, with a simple formula and examples.
Cash
Profitable but out of cash: how it happens and how to spot it
A business can be profitable and still run out of cash. The five usual causes, a simple days-to-pay calculation, and what managers can do about it.
Pricing
Gross margin vs markup: the mix-up that quietly costs you money
Margin and markup are not the same number. Learn the difference, the conversion formula and the pricing mistake it causes, with simple worked examples.
Cash
How to read a cash flow statement in 5 minutes
The cash flow statement in plain English: the three sections, what each one tells you, and the one comparison finance makes first. For non-finance managers.
Budgets
Budget vs forecast vs actual: how to read a variance report
The difference between budget, forecast and actuals, how to read a variance report, and how to split a variance into price and volume, with a worked example.
Budgets
Capex vs opex: why finance cares which box your cost goes in
Capex vs opex in plain English: what counts as each, how they hit the P&L, EBITDA and cash differently, and why your budget request depends on it.
Budgets
Why your budget gets cut even when sales grow
Sales up 10%, budget still cut? Here's what finance sees: the cost of growth, gross profit and the EBITDA target. A plain-English guide for managers.
Meetings
The 4 Boardroom Questions: what to ask about any number
What? Why? So what? Now what? Four simple questions that help managers read any number in a finance meeting, from revenue to EBITDA to cash.