Financial Intelligence for Entrepreneurs Quotes

“Return on assets, or ROA, tells you what percentage of every dollar invested in the business was returned to you as profit.”
― Karen Berman, Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers

“The power of ratios lies in the fact that the numbers in the financial statements by themselves don’t reveal the whole story.”
― Karen Berman, Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers

“EBITDA, as we noted earlier, is no longer Wall Street’s favorite measure to watch. Now the hot metric is free cash flow. Some companies have looked at free cash flow for years. Warren Buffett’s Berkshire Hathaway is the bestknown example, though Buffett calls it owner earnings. As Buffett’s term suggests, it’s an important metric for entrepreneurial companies.”
― Karen Berman, Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers

“Profit ≠ Cash (and You Need Both)”
― Karen Berman, Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers

“EMPLOYEES ARE OUR MOST VALUABLE ASSET” (OR ARE THEY?)”
― Karen Berman, Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers

“You can think of operating expenses as the cholesterol in a business. Good cholesterol makes you healthy, while bad cholesterol clogs your arteries. Good operating expenses make your business strong, and bad operating expenses drag down your bottom line and prevent you from taking advantage of business opportunities.”
― Karen Berman, Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers

“You don’t need to be a rocket scientist to be financially intelligent.”
― Karen Berman, Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers

“The art of accounting and finance is the art of using limited data to come as close as possible to an accurate description of how well a company is performing.”
― Karen Berman, Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers