Building Your Multi-million-dollar Practice: With Peter M. Vessenes

Episode 3 is split into four parts; each segment will be discussing a different Liquidity KPI. You'll learn about how that metric impacts your client’s business and what it can do for your advisory services. A company must be growing, because a company that is static is actually dying. So understanding the Working Capital KPI is critical to understand. The formula is: (Current Assets – Current Liabilities) Companies with a lot of working capital are able to handle growth much easier. Companies with a negative ratio here may lack the funds for growth, or may need a to find additional capital from investors or shareholders. Knowing what your clients’ Working Capital Ratio is allows you to understand how to best help them grow.