Understanding What Your Numbers Actually Mean

Most businesses track revenue and expenses. But when things get tight, you need to know if you can cover your obligations next week, next month, or next quarter. That's where liquidity and solvency come in.

See How We Approach This

Financial analysis dashboard showing liquidity metrics

Three Questions Every Business Owner Should Ask

These aren't theoretical exercises. They're practical checkpoints that help you sleep better at night.

Can You Pay Bills This Month?

That's liquidity. Having cash when you need it.

We look at your current ratio, quick ratio, and cash flow patterns. Not just what the textbook says they should be, but what makes sense for your industry and seasonal patterns. A construction firm in January has different needs than a retailer in December. Context matters more than formulas.

Could You Survive a Slow Year?

That's solvency. Your long-term staying power.

We examine your debt-to-equity ratio, interest coverage, and asset structure. If revenues drop 20% for six months, what happens? If a major client pays late, do you have options? These scenarios aren't pessimistic—they're realistic planning. And knowing the answers ahead of time gives you room to make good decisions instead of desperate ones.

Are You Building or Borrowing?

Growth funded by debt looks different than growth funded by profit.

Neither is inherently wrong, but you need to know which one you're doing. We help you understand whether your expansion is sustainable or risky, whether your leverage is strategic or concerning. Sometimes borrowing is smart. Sometimes it's the only option. But it should always be intentional, with clear understanding of what you're trading off.

Why Most Financial Reports Miss the Point

You get a balance sheet that says everything is fine. Then two months later you're scrambling to make payroll. The numbers were accurate, but they weren't telling the real story.

We focus on timing, trends, and pressure points. Not just totals, but when cash comes in versus when it goes out. Not just profit margins, but how quickly receivables turn into actual money you can use.

Business owner reviewing cash flow timing analysis

Four Areas We Watch Closely

Working capital efficiency and how quickly your money cycles through operations

Debt structure and whether your repayment schedule matches your cash generation

Asset liquidity and what you could actually convert to cash if needed

Coverage ratios that show how comfortably you can meet obligations during slower periods

Real Situations We've Helped Navigate

These aren't success stories with perfect endings. They're examples of businesses that got clearer on their position and made better decisions because of it.

The Profitable Company That Almost Ran Out of Cash

A manufacturing business was growing fast and showing healthy profits on paper. But they were extending longer payment terms to win contracts while their suppliers demanded faster payment. The timing mismatch nearly broke them. We helped them see the problem three months before it became critical, giving them time to restructure payment terms and secure a line of credit on reasonable terms.

Manufacturing facility production floor with equipment

The Cautious Owner Who Could Have Grown Faster

Sometimes the problem isn't too much debt, it's too much caution. A retail business had strong cash reserves and minimal borrowing, but was passing on good expansion opportunities because the owner was worried about overextending. When we showed them how much cushion they actually had, they opened two new locations. Both are performing well, and the company's overall position is stronger because they're not putting all their eggs in one basket.

Retail storefront during busy business hours

We thought we understood our financial position until brexaliviora walked us through what our ratios actually meant for day-to-day operations. Turns out we were sitting on unused borrowing capacity while paying rush fees to suppliers. Just restructuring our payment approach saved us enough to hire another person.

Freja Lindholm

Operations Director, Queanbeyan