Key financial indicators for construction – Receivables to payables ratio

The receivables to payables ratio is simple and can be an effective tool to identify problems with billings and collectability issues. The ratio is calculated by dividing the receivables balance by the payables balance. Don’t miss: Working capital is a key financial indicator for construction companies The ratio is unique to each company and is …

Keep Reading

Working capital is a key financial indicator for construction companies

Does your construction company have enough resources to perform the work in current backlog? Working capital is a key financial indicator that can help answer this question. Don’t miss: Key financial indicators for construction The basic equation for working capital is: Current Assets – Current Liabilities = Working Capital. Creditors and bonding companies will typically …

Keep Reading