Credit Matters

Credit Matters Blog

Business, Its A Numbers Game

Kim Radok18 January 2018

BUSINESS, ITS A NUMBERS GAME

When we talk numbers in business, the focus is rarely on the numbers relating to the risks of operating a successful business. In business, there are always risks. Therefore, measuring the numbers relating to risk, is an essential component in operating a successful and viable business. The following areas of risk are worth measuring accordingly.

A business which borrows, pays interest on those borrowings on every day there is an outstanding debt. Any day when profit is not earned, means the shortfall between profit and the interest expense must be made up on the other days. Therefore, do you know the number of dollars of profit which needs to be earned each day of operations to cover your interest expense?

With interest rates at their lowest level in history, it is worth knowing these figures in case interest rate increase tomorrow.

Knowing the number of doll