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Financial Strength

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Financial Strength

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  1. Improving the financial strength of a company

  2. What is financial strength? • Financial strength is the backbone of a company. In general the financial strength of a company can be measured through three major areas. The financial strength of a company plays a vital role in decision makings. • Profitability, Liquidity and Solvency are the three major areas where the financial strength is measured. • Most of the companies in the world believe in efficiency and cost control to strengthen their financial background. 2

  3. Profitability – The Ability of generating revenue in excess of its expenses using the resources. Liquidity – The Ability to manage the money easily, also how quickly you can get your hands on to it. Solvency – The Ability pay the debts as they become due. 3

  4. Tips to strengthen the financial background • Understand your cash flow and build a budget that works ❑ Track your cash flow ❑ Start automatic contributions ❑ Stick to it • Eliminate debts that drag down your financial health ❑ Get organized ❑ Pick a payment plan ❑ Take a break from your credit cards • Take your savings to the next level with the right investments • Consulting Financial solution providers 4

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