Graphical Representation Of Cash Flow
12Jan 2018
Jan 12, 2018

Graphical Representation Of Cash Flow

Graphical Representation Of Cash Flow

A graphical representation of cash flow is one of the most important tools for an executive and should be included on any performance metrics dashboard. A spreadsheet should also be used to translate the accounting cash flow statement into a rolling 12-month history and a 12-month future cash flow measurement tool.

A graphical cash flow with rolling historical data can make future projections easier to complete. These tools can be critically important for growth, seasonal trends or shrinking companies.

Many companies have died in their growth because they did not track cash flow or the needed cash flow resources.

Keys to Performance Metrics | Graphical Dashboard

Keys to Performance Metrics | Graphical Dashboard, a 12-month rolling tracking system can work on most performance metrics. It works by adding up the 12 months and graphically representing the sum on a monthly or another time basis. For example, if you add June of the present year; then the previous June is taken out of the sum.

With a 12 month rolling metric any change in slope is significant because a current month replaces a past year month. Any change represents a change in the month’s activity rather than waiting for YTD to get to the 4th quarter.

Valuation – Performance Metric

It is recommended that a business valuation is done every two years. With my nine methods and calculations, it can be used as a metric for management performance. Are the net assets improving? Is the cash flow better? What impact does that have on the market value method? If the net cash flow is increasing, the statistically projected method will show a rise. I discuss these nine valuation concepts in my book. “Business Valuation Principles Made Easy with How to Increase Value Financially.”

Steve testifies that Dale Richards explained the power of graphical performance dashboards. Steve is from Sacramento, CA and runs a building supply company He learned key business concepts from Dale Richards’ presentation on Business Valuation Principles – How to Increase Your Business Value, Financially, Operational and Strategically.

Learn more about Business Valuation Principles by Dale S Richards



Preview Dales presentations: Watch Dale In Action Dale S. Richards specializes in management, marketing, operation optimization & business valuation consulting and is a 25+ year turnaround expert. He has implemented success concepts into results in 150+ companies. Dale is a Certified Valuation Analyst (CVA) with NACVA, a Vistage International CEO-Board Chair in Utah and a World and Vistage International Speaker. Visit to learn more about Dale and business valuation services.

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