Types of cash flows: operating, investment, financial
You count the money at the end of the month and see that the expenses are more than the income, which means that it has gone into negative territory. I…

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The third rule for building a group of companies without signs of artificial fragmentation.
Let's turn to business process notation again. Earlier we decided on the inputs, the activity itself, and the outputs (goals). However, in arbitration practice on artificial fragmentation of a business,…

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Management company for business: opportunities, options and risks
The inclusion of a management company in the legal business model is a common phenomenon. As a rule, the management staff of a business is one and it is impossible…

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Preferential loans for legal entities and individual entrepreneurs
The state provides loans to businesses for resuming operations and for expenses related to the borrower's business activities. The funds issued are not earmarked; they can be used not only…

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Exchange-traded bonds for medium-sized businesses
It is no secret that in recent years there has been an interest of individuals in investing, the number of open investment accounts is growing, and the state is supporting…

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light bulbs

Operating leverage: what happens to profit margins if revenues fall. And if it grows up?

Usually business owners are interested in two interrelated indicators: revenue and profit. Revenue shows how much the company earned, and profit shows how much is left after deducting expenses.

Most likely, if the revenue is higher, then the profit will increase. On the contrary, it also works: if the revenue falls, then the same will happen with the profit. And everything would be very simple if there was a direct relationship between the indicators. But no: the revenue may sink just a little, and this will lead to large losses. Continue reading

Margin analysis: which areas and products bring in more money

Let’s imagine that confectioner Vasya Yagodkin sells one hundred cakes with raspberries and one hundred with currants every month. Raspberry ones bring him 50,000 rubles, and currants – only 30,000 rubles. It seems that it is more profitable to score on currants and sell only raspberry cakes. The idea of ​​\ u200b \ u200b norms, but first there are a few things to calculate.

Before we get rid of the currant cakes, we consider how much money Yagodkin spends on production, and we see: 40,000 rubles are spent on raspberry cakes, and 10,000 rubles on currant cakes. Continue reading

Not a single share ... And again about the motivation of top managers
Increasingly, we are faced with a request from business founders: we want to give top managers shares so that they receive a percentage of profits and are associated with the…

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Mistakes and risks of financing in the group of companies
You may already be familiar with our analytics on allegations of artificial business splitting, which covered all tax arbitration disputes in the context of "business splitting" in a complete manner.…

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When you can't do without an agency agreement
We have repeatedly talked about the pros and cons of an agency agreement (see, for example, here), pointing out the need for a deliberate approach to the use of the…

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