by Simplar | Jan 14, 2021 | Financial Management and Risk
The Flash Report Last week I highlighted the critical day-to-day usefulness of liquidity ratios in alerting a CEO that he might be flirting with financial difficulty. Today I would like to back up and take a look at the bigger picture – the CFO’s critical role...
by Simplar | Jan 14, 2021 | Financial Management and Risk
Liquidity If I learned anything from ten years operating the world’s largest workout firm for sureties engaged in construction bonding, it’s that liquidity (or the lack thereof) is the most important predictive metric on a construction company’s balance sheet....
by Simplar | Jan 14, 2021 | Financial Management and Risk
… Read the rest “The R-Score”
by Simplar | Jan 14, 2021 | Financial Management and Risk, Financial Management and Risk
Sources and Uses of Funds In our ongoing discussion of risk throughout 2018, the multiple risk factors identified boiled down to one core flaw that brought down the majority of failed contractors – a shortage of capital. For one reason or another, the failed...
by Simplar | Jan 14, 2021 | Financial Management and Risk
Profitability Equals Viability Dateline: Engineering News Record, August 26, 2020, Debra K. Rubin and Peter Reina “…As it moves away from lump-sum contracting, in the wake of project charges and recent quarter losses to focus on higher-margin...
by Simplar | Jan 14, 2021 | Financial Management and Risk
Capital Is King: During COVID Years of research into the causes of construction business failure confirms that throughout history the sudden collapse of construction firms, large and small, comes down to one factor: the slow and sometimes invisible erosion of the...
