Understanding cashflow management
Cashflow management is a valuable tool for profitable growth and success. It highlights the amount and speed of funds flowing through a business. If managed properly, cashflow can help improve return on investment.
Inventory is a huge asset on a company’s balance sheet. That’s why it is so important to regularly measure inventory for turnover, age, number of days supply, and productivity. Using the Gross Margin Return on Investment (GMROII) formula can help businesses learn more about their inventory productivity.