Steve Sorensen Networth

You can actually calculate a company’s liquidity ratio and devise ways to improve it, according to business graduate and Networth blogger Steve Sorensen. Liquidity refers to the business’s ability to meet its financial obligations as they arrive. There are several ways that it can do this and satisfy these different obligations, including tackling overhead, unproductive assets, and overall profitability. Reducing overhead These costs can include things that don’t necessarily produce a profit, or only do so indirectly. It could be rent, utilities, professional fees such as industry memberships, and insurance. You can, for instance, negotiate a better rate for long-term insurance or implement steps to lower electricity costs in the office. Shedding unnecessary assets or using idle funds It’s best to shed assets after they no longer produce a profit. It could be a small building that stores used assets or equipment. Instead of paying for the building’s upkeep, the business can open...