Because Walmart sells a huge volume of items and pays upfront for each unit it sells, its cost of goods sold increases as sales increase. Operating leverage is a cost-accounting formula (a financial ratio) that measures the degree to which a firm or project can increase operating income by increasing revenue. A business that generates sales […]

Whether you prefer daily, weekly, monthly, or annual bookkeeping, we offer flexibility based on your availability. Our goal is to adapt to your schedule, ensuring seamless and efficient bookkeeping services. Accounting Pros specializes in supporting clients in unique environments- with over 25 years of accounting and tax experience, we’ve helped thousands of businesses grow and […]

If your AP turnover is too low or too high, you need a ratio analysis to identify what’s causing your AP turnover ratio to fall outside typical SaaS benchmarks. You also need quick access to your most important metrics without taking valuable time entering them manually into Excel from different source systems and financial statements. […]

Since the growth rate was 3.0% in Year 0, the percent assumption in Year 5 will have dropped to 0.5%. For example, the maintenance capex in Year 2 is equal to $71.3m in revenue multiplied by 2.0%, which comes out to $1.6m. Suppose a company has revenue of $60.0m at the end of the current […]