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Many companies don’t struggle because of profits. They struggle because of cash flow. Entirely preventable, but here’s the kicker: Too many leaders rely on historical metrics—net income, EBITDA, last quarter’s revenue—thinking they reflect financial health. They don’t. Because profit tells you where you’ve been. Cash flow tells you where you’re going. ?? Learn to analyze a cash flow statement in 10 steps and never miss another red flag again: https://lnkd.in/e2JXiUK6 ? Profit is a historical number. It tells you how the business performed—not whether it can navigate through what’s coming next. ? Cash flow is real-time financial health. It shows how money moves in and out, revealing whether you can meet obligations today. ? Forecasted cash flow is future strength. Because past performance doesn’t guarantee future liquidity. If you don’t know what’s coming, you’re flying blind. Here's why companies get this wrong: 1?? They trust EBITDA instead of tracking real cash. → EBITDA strips out expenses like interest and taxes, but those bills still need to be paid. 2?? They assume profit = cash in the bank. → Profit looks good on paper, but if revenue is tied up in receivables, you have no liquidity. 3?? They don’t forecast future capital needs. → It’s not enough to know what happened last quarter—cash planning must include future payment obligations, growth investment plans, and economic shifts. Here's the right way to measure financial strength: 1. Operating Cash Flow → Are you generating real cash, or just showing paper profits? 2. Real Free Cash Flow → After investments, do you have excess cash, or are you overextending? 3. Cash Conversion Cycle → How long does it take to turn revenue into usable cash? 4. Debt-to-Cash Flow Ratio → Can you service obligations, or is debt outpacing liquidity? 5. Rolling 16-Week Cash Flow Forecast → Are you prepared for short-term risks, or just hoping for the best? The Bottom Line: ? Historical profit tells you where you’ve been. ? Current cash flow tells you where you are. ? Cash flow forecasts tells you your future. ?? Make 2025 your best year yet and master financial leadership ? ? Enroll in my 5 on-demand video courses and save 50%+ with the bundle: https://bit.ly/4bTdu8T ? Join the April cohort waitlist for my 6-week Financial Intelligence Program: https://bit.ly/3ZCI0kr ?? Like, Comment, Repost if this was helpful. And follow Oana Labes, MBA, CPA for more.

Tracking cash flow isn’t enough.

Revenue is up. Profits look good. But is your business actually financially healthy? Too many companies look strong on paper—until they crumble. ? Learn to analyze a balance sheet and never miss a red flag again: https://bit.ly/4jTnzI9 Here’s how to spot the real story in 4 simple steps: 1?? Analyze the Balance Sheet Why it matters: The balance sheet is where financial strength (or weakness) is exposed. It shows whether a business can survive tough times, manage debt, and fund growth. Key focus areas: ? Liquidity (Can the company pay its short-term obligations?) ? Solvency (Is it over-leveraged or financially stable?) ? Asset efficiency (Are assets being used effectively?) 2?? Analyze the Income Statement Why it matters: Profitability isn’t just about net income—it’s about the company’s ability to generate sustainable earnings. Key focus areas: ? Operating leverage (How much fixed vs. variable cost risk does the business carry?) ? Profitability trends (Gross margin, Operating margin, Net margin) ? Cost structure (Is the company efficient in managing expenses?) 3?? Analyze the Cash Flow Statement Why it matters: Profit is an accounting number. Cash flow is survival. A profitable business can still fail if it runs out of cash. Key focus areas: ? Operating cash flow (Is the company generating cash from core operations?) ? Investing cash flow (How much is being reinvested for growth?) ? Financing cash flow (Is debt being used wisely or creating financial risk?) 4?? Perform a Full Ratio Analysis Why it matters: Ratios provide benchmarks and trends, helping you understand the bigger picture. Key focus areas: ? Profitability (Margins, ROE, ROA) ? Liquidity (Current ratio, quick ratio, CCC) ? Solvency (Debt-to-equity, debt service coverage) ? Efficiency (Asset turnover, inventory turnover) ? Final Thought: Context is Everything Numbers don’t tell the full story unless you interpret them correctly for your objectives. ? Identify the right financial metrics for your goals. ? Consider industry, size, and economic conditions. ? Track trends over time to guide better decision-making. ?? Make 2025 your best year yet and master financial leadership: ? Save 50% with The Masterclass Bundle: https://bit.ly/3RlTCDD ? Join the next cohort of the CEO Financial Intelligence Program: https://bit.ly/3ZCI0kr ? Get my popular infographics: https://bit.ly/3K2B5Jc ?? Like, Comment, Repost if this was helpful. And follow Oana Labes, MBA, CPA for more insights on financial leadership.

Accounting gives you hindsight. Finance gives you foresight.

How to Spot Red Flags in an Income Statement in 7 Steps. Get your copy of the ultimate guide. ? (bookmark for later) ?? Want this in a full-resolution PDF? Like & comment, then download it here: https://bit.ly/4ic5vYf Most people think a strong net income means a business is financially healthy. But here’s the truth: your income statement can hide serious financial red flags. Here are 7 warning signs every CEO and CFO should watch for: 1?? Revenue is growing, but net income isn’t This signals rising costs, pricing pressures, or lower-margin sales—indicating an inability to scale profitably. 2?? Shrinking gross margins Higher production costs, inefficient pricing, or poor cost control can erode profitability. If margins are declining, investigate further. 3?? Unexplained surges in SG&A expenses A sudden spike in selling, general & administrative (SG&A) costs could mean excessive executive compensation, poor cost management, or unnecessary spending. 4?? A sharp rise in interest expense Higher interest costs could indicate excessive debt, deteriorating credit ratings, or an over-reliance on borrowed capital. 5?? Unusual “Other Income” gains Large non-operating income from asset sales, litigation settlements, or one-time government grants may inflate earnings but don’t reflect sustainable profits. 6?? Significant variations in tax expense Big swings in tax provisions could signal aggressive tax strategies, disputes with regulators, or potential future liabilities. 7?? Strong net income but weak operating cash flow If a company reports high profits but struggles to generate cash from operations, it could be relying on accounting tricks rather than true financial strength. Final Takeaway: Real financial intelligence comes from digging deeper into the numbers. Because a healthy bottom line doesn’t always mean a strong business. ?? Apply to join the April Cohort of my 6-week live CEO Financial Intelligence Program: https://bit.ly/3ZCI0kr ?? Enroll in my 5* on-demand video courses: https://bit.ly/3RlTCDD and get my popular infographics: https://bit.ly/3K2B5Jc ?? Transform your strategic financial planning with best-in-class automated CFO Financial Intelligence, Forecasts and Dasboards:https://bit.ly/3Aa36fG Like, Comment, Repost if this was helpful. And follow Oana Labes, MBA, CPA for more insights on financial leadership.

CEOs need Strategic Finance. But here’s the problem: Most CFOs focus on Budgets. If your finance team is just budgeting and forecasting… You’re at best tracking where you'll end up. Not engineering where you need to be. Reactive finance is holding everyone back. ????Download my exclusive 6-step formula to link strategy with finance and drive lasting business results: https://bit.ly/41y81Tb Let’s break it down. What Most CFO Offices Provide vs. What CEOs Actually Need For SMBs (<$50M in revenue): ? Controllership (compliance, reporting, closing the books) For Growing Mid-Market ($50M–$100M): ? Controllership + FP&A (budgeting, forecasting, variance analysis) For Large Mid-Market ($100M–$500M): ? Controllership + Treasury + FP&A (cash management, debt, liquidity strategy) What’s missing? ?? Strategic finance. The expertise that ensures a business doesn’t just react to financial results— but actually engineers them. Most companies don’t reach $500M+ because they waited too long to adopt strategic finance. Here’s what Strategic Finance does differently: 1?? Capital readiness—always. You should never be scrambling for capital. Strategic finance optimizes capital structure at every step, ensuring you’re 12–18 months ahead of funding needs. 2?? Board-ready, lender-ready, investor-ready. Deep analysis and financial storytelling condition performance before you get in the room—not after the numbers are locked in. 3?? From reactive finance to financial leadership. Instead of reporting what happened, strategic finance shapes the outcome to align with business objectives. And that’s the difference between companies that plateau… And those that scale to $500M+ without missing a beat. Strategic finance expertise is rare outside Large Mid-Market. Financiario is democratizing it for everyone. ?? Stop running finance in the rearview mirror. Learn how here: https://bit.ly/3Aa36fG ?? Join my CEO Financial Intelligence Program to master strategic capital allocation and much more. https://bit.ly/3ZCI0kr ?? Enroll in my 5* on-demand video courses: https://bit.ly/3RlTCDD and get my popular infographics: https://bit.ly/3K2B5Jc ?? Like, Comment, Repost if this was helpful. And follow Oana Labes, MBA, CPA for more insights on financial leadership.

Real financial intelligence starts with cash flow strategy.

Most CEOs focus on the P&L. That's a big mistake. A company can be profitable today and still fail to scale, attract investors, or create long-term shareholder value. Why? Because CEOs focus on earnings instead of cash flow strategy. Download my viral one page guide to analyzing a cash flow statement: https://lnkd.in/e2JXiUK6 Without a plan to generate, allocate, and invest cash, you risk: ? Chasing revenue instead of high-ROI investments ? Wasting capital on low-impact initiatives ? Carrying debt that weakens financial flexibility ? Failing to attract the right capital at the right time ? Missing opportunities to scale sustainably ??That’s why the Cash Flow Statement is the most important financial report in your business. Here’s how it actually works—and how to master it. 1. Operating Activities = The Cash Engine This is the heartbeat of your business—where cash is created or destroyed in daily operations. Where cash comes from: ? Sales collected in cash ? Payments received on past receivables ? Interest and dividends received Where cash goes: ? Payments to suppliers and employees ? Interest on debt ? Taxes How to master it: ? Optimize your cash conversion cycle. ? Use sensitivity analysis to stress-test your plans. 2. Investing Activities = The Growth Playbook This is where strategy meets execution—how you deploy cash to drive enterprise value. Where cash comes from: ? Selling equipment or investments ? Loan repayments from others Where cash goes: ? Buying property, equipment, or investments ? Lending cash to others How to master it: ? Prioritize investments using NPV and IRR. ? Align investments with sustainable operating cash flow growth 3. Financing Activities = The Capital Structure This determines how you fund your expansion—through debt or equity. Where cash comes from: ? Issuing stock ? Taking on new debt Where cash goes: ? Paying dividends ? Buying back stock ? Paying off debt How to master it: ? Optimize your capital structure. ? Align dividend and stock repurchase policies. The Takeaway: Most CEOs focus on profit first. But real financial intelligence starts with cash flow strategy. Because the businesses that win aren’t just profitable— They leverage their cash to maximize enterprise value. ?? Join my CEO Financial Intelligence Program to master strategic capital allocation and much more. https://bit.ly/3ZCI0kr ?? Enroll in my 5* on-demand video courses: https://bit.ly/3RlTCDD and get my popular infographics: https://bit.ly/3K2B5Jc ?? Transform your strategic financial planning, forecasting and reporting with Financiario. Like, Comment, Repost if this was helpful. And follow Oana Labes, MBA, CPA for more insights on financial leadership.

Most CEOs and CFOs chase EBITDA growth like it’s the holy grail. But here’s the truth: You can manipulate EBITDA... You cannot manipulate Cash Flow. Download my viral one page guide to analyzing a cash flow statement and never be confused again: https://lnkd.in/e2JXiUK6 Here’s the problem: EBITDA is an incomplete measure. It ignores interest, taxes, depreciation, and amortization—conveniently removing real expenses that impact your future. And with a few accounting tricks, you can even make EBITDA look stronger than reality: ? Capitalizing expenses instead of expensing them ? Excluding stock-based compensation as if it’s not a real cost ? Reclassifying recurring costs as “one-time” or “non-core” ? Aggressive revenue recognition before the cash actually arrives Pretty concerning, don't you think? And the result? A high EBITDA on paper while your business quietly runs out of cash. Here’s the Reality: Cash flow is different. It tells you what EBITDA won’t: ? Can you pay your bills? ? Can you invest in growth? ? Where is your cash coming from? ? Can you fund your debt repayments? You can report high EBITDA and still run out of money. But strong cash flow means you’re in control. The Takeaway? Stop obsessing over EBITDA. Start optimizing cash flow, liquidity, and capital allocation. Because at the end of the day, cash flow pays the bills, fuels growth and drives enterprise value. ?? Make 2025 your best year yet and learn to master financial leadership? ? Enroll in my 5* on-demand video courses: https://bit.ly/3RlTCDD ? Join the waitlist for my 6-week Financial Intelligence Program: https://bit.ly/3ZCI0kr ? Get my popular infographics: https://bit.ly/3K2B5Jc ?? Like, Comment, Repost if this was helpful. And follow Oana Labes, MBA, CPA for more insights on financial leadership.

Not all Profits are created Equal. But here’s the problem. Most executives can’t really tell them apart. I see it all the time—leaders celebrating a “profitable” business… All while burning cash, missing targets, and failing to scale. Why? Because they don’t know which profit actually matters. ? Get my free one-pager and learn to analyze a balance sheet in 10 steps: https://bit.ly/3QsGLyV Here’s how to make each kind of profit work for you → 1. Gross Profit → Optimize Pricing & Production ? Use it to assess pricing strategy—declining gross profit? Prices are too low or costs are rising. ? Benchmark production efficiency—are labor and materials being used effectively? ? If margins shrink, investigate direct costs (COGS) before touching overhead. 2. Contribution Margin → Improve Scalability ? Measures profitability before fixed costs—low contribution margin? You’ll struggle to scale. ? Helps decide pricing and product mix—focus on high-margin products. ? Use it for breakeven analysis—know exactly how much revenue you need to cover fixed costs. 3. Operating Profit → Control Overhead & Runway ? The best indicator of core business health—can your revenue sustain operating expenses? ? Use it to assess overhead spending—high costs mean inefficiencies in SG&A or salaries. ? If weak, focus on cost control without killing growth. 4. Net Profit → Cash Flow & Long-Term Viability ? The final score—tracks total profitability after all expenses, interest, and taxes. ? Use it to assess financing needs—low or negative net profit? Your cash flow is at risk. ? If declining, don’t just cut costs blindly —check tax strategy, debt structure, and Gross Profit first. The Takeaway: Profit isn’t a single metric. It’s a toolbox. Use the right tool at the right time, and watch your bottom line grow. Make 2025 your best year yet and learn to master financial leadership? ? Get my popular infographics: https://bit.ly/3K2B5Jc ? Get my 5* on-demand video courses: https://bit.ly/3RlTCDD ? Join me for a free strategic cash flow webinar: https://bit.ly/49n7Lqh ? Apply for my 6-week Financial Intelligence Program: https://bit.ly/3ZCI0kr ?? Like, Comment, Repost if this was helpful. And follow Oana Labes, MBA, CPA for more insights on financial leadership.