Recent Articles

Liquidity

In business, liquidity is defined as the period of time it takes to turn assets into cash. It takes 20 minutes to turn the balance in the checking account into cash. You head on down to the bank and present a check. You get cash.

Cash Ratio

09/04/2017

One of the liquidity ratios used in business is the cash ratio.  It is a much more effective tool for small business than the traditional current or quick ratio.  Although the cash ratio is more difficult to manipulate in small business, most [...]

An Explanation of Current Assets

03/11/2013

The asset side of the balance sheet is divided into 3 major sections.  They include current assets, fixed assets, and other assets.  Current assets carry the most value to the small business entrepreneur because of the cash conversion aspect.  [...]

Small Business Model Series Entry #4 – Basic Research

01/16/2013

Research is something I hate.  I don’t know which is worse, a dental visit or doing research.  This is why I didn’t go to college.  But, I know; I want to protect my hard earned dollars and I need to get smart about Automated Teller [...]

Liquidity – What Does This Mean?

01/12/2013

In business, liquidity is defined as the period of time it takes to turn assets into cash.  It takes 20 minutes to turn the balance in the checking account into cash.  You head on down to the bank and present a check.  You get cash.  But most [...]