Trailing 12 Months (TTM): Why is this important?
Trailing 12 Months (TTM) is a term used to describe the past 12 consecutive months of a company's performance. It does not typically represent a fiscal-year ending period. Eliminates seasonality, month to month variance. Avg CEO only looks at single month.
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Cash: Why is this important?
What is Cash? Cash is the liquid currency that a business has on hand or in the bank. Why is it important? Having cash on hand is crucial because it determines your company’s ability to cover immediate expenses, invest in growth opportunities, and ...
Days of Cash: What does it mean and why is it important?
What is Days of Cash? Days of Cash refers to the number of days a company can operate using its available cash and cash equivalents without further revenue. Why is it important? Days of Cash indicates a company’s short-term liquidity and its ability ...
Net Cash Flow: Why is it important?
What is Net Cash Flow? Net Cash Flow is the difference between a company’s cash inflows and cash outflows during a specific period. Why is it important? Net Cash Flow is important because it provides a clear picture of the company’s liquidity and its ...
EBITDA Margin: Why is this important?
What is EBITDA Margin? EBITDA Margin, or EBITDA Profit Margin, is a financial ratio that represents the percentage of total revenue retained as EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). It measures a company's ability ...
Accounts Payable: Why is this important?
What is Accounts Payable (A/P)? Accounts Payable (A/P) represents the money a company owes to its suppliers for goods or services purchased on credit. Why is it important? Accounts Payable (A/P) is important because it reflects a company’s short-term ...