Balance Sheet Overview

How closely are you monitoring your finances?

When we do an observation for a company within the home improvement industry, one of the first things we take a look at are their financial statements. There is no better way to get a “snapshot” of a company’s financial resources and obligations than by examining a balance sheet.

Here are some important guidelines to consider when analyzing your balance sheet:

  • Measure the current balance sheet against the previous month’s and the same month from the previous year
  • Use the entire balance sheet, not the company’s cash balance to determine the wisdom of a large purchase or acquisition of debt
  • Construct and review depreciation schedules and aged receivables on a regular basis
  • Balance sheet accounts are ongoing and are not reset at the beginning of each year
  • When performing this analysis, you will be determining your company’s leverage (the ratio of debt to equity – assets are funded with either debt or equity).
  • Compare tangible assets (cash, accounts and notes receivable, inventory, equipment, “lease hold” improvements and the like) to intangible assets (non-physical resources such as customer lists, goodwill, trademarks, franchises and similar). Keep in mind that tangible assets are are usually more liquid than intangible ones.
  • How solvent is your business? Solvency = The ability to meet future debt obligations. Compare the liquidity of assets with the maturation of company liabilities.
  • Liquidity is the ability to convert assets into cash. Accounts receivable that are collectible within 30 days are more liquid than a note or investment which might take several months or longer to sell.
  • Evaluate earning before interest, taxes, depreciation, and amortization (E.B.I.T.D.A.) to ascertain the true value of your company
  • Assess the book value for estate planning (and similar) purposes
  • Plan for year end (or similar) tax liabilities, bonuses, owners (stock holders) compensation
  • Structure an exit strategy to plan for the future of your business

Unless you are an accountant by trade, or someone who enjoys working with numbers, you probably find this to be a laborious process. However, if you are a business owner it is vital to account for all of the money that is tied up in your business.

For more information on how to analyze your financial statements, you can contact us directly at admin@daveyoho.com.

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Todd Miller, President
Isaiah Industries

Our remodeling business had annual sales of under $9 million when we became contract clients of Dave Yoho Associates. Due to their training and systems, our revenue soared – – we are headed for over $35 million this year.

Vince Nardo, President
Reborn Cabinets

I would like to thank Dave Yoho Associates for their consulting services. For me, the meaning of ‘value’ is getting more than what you paid for, and their services truly exemplify this.

Aaron Heth, Director of Sales
Freedom-Solar

When it comes to consulting advice for the home improvement industry, Dave Yoho Associates has no equal. We have worked with them for over 15 years and we are ecstatic about the results!

Daniel Green, Sr. Vice President
Solarshield

Recently, Dave Yoho Associates performed ‘role-play’ scenarios for three hours with our salespeople. The eye-rolling is gone and their confidence has grown substantially. Can’t wait for your visit next month!

Jason Phillips, CEO
Phillips Home Improvements

I learned an abundance from your canvassing training. Thank you so much for helping us revise our methodology!

Lynann Everett, Interactive Marketing Manager
RbA of Northeast PA

Dave Yoho Associates are the leaders in business consulting and sales training for the industry. We utilized their services to grow from a small business to averaging over $10 million annually.

Wendy Patterson, Co-Owner
Patterson Homes & Construction

I want to thank the entire team at Dave Yoho Associates for meeting with our Canvassing Managers last week. The knowledge we learned in only one day was invaluable.

Jason Hollister, Proximity Marketing Manager
RbA Southard Corporation

We have been working a long time to reach a “million-dollar month”, and this September we finally accomplished our goal! The Dave Yoho Associates model and training tools are without a doubt the keys to our success.

Chuck Cometti, General Manager
RbA of Central New York

One of the primary takeaways from your most recent visit to our company was that the words, promises, and tone of our call center reps need to speak directly to the prospect’s needs, followed by a professional, systematic sales presentation which builds immediate rapport and trust.

Dave Cerrone, President
Fitch Construction

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