16 Feb 2011
Breaking Up is Hard to Do…
Rhondalynn Korolak, Author of Financial Foreplay® and On The Shoulders of Giants
The restaurants and promenades in the Docklands (Melbourne) were packed on Monday, night with couples. It was after all Valentine’s Day – the day when everyone declares their undying love for each other… well, at least their “commercial love”.
Apparently, if NAB has anything to do with it, February 15th is now the official day of the year to break off a bad relationship – the “unValentines Day”. I wonder how long it will take for chocolatiers, greeting card companies and florists to create some products to commemorate this special occasion?
The obvious question that no one seems to be asking is “why was the NAB dating both the ANZ and CBA in the first place?”
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18 Aug 2010
Could You Make $6 Billion & Still Be Bankrupt?
Rhondalynn Korolak, Author of "Financial Foreplay®" and "On The Shoulders of Giants
If you’re a small-mid size business owner and struggling to make your operation both profitable and cash flow positive, don’t beat yourself up too much! Even some of the largest corporations in this country are getting it wrong and stuffing up every day. Take the CBA for example – one of the largest banks in Australia recently announced a $6 billion profit for 2009-10. To put this in context, this equates to around a 17 per cent return on investors’ funds, which is impressive indeed in these tough economic times.
Too bad the CBA is technically bankrupt – meaning they don’t have enough liquid assets to cover the debt as it is coming due.
But how can this be, you might ask? The answer is simpler than you might think and it applies to ALL companies (big and small) – Profit is pointless and cash flow is KING! More businesses in Australia go under every year due to lack of cash flow than any other single reason. No business, even financial institutions which are afforded many governmental protections and safeguards, are exempt from this basic law of the economic jungle.
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18 Aug 2010
Could You Make $6 Billion & Still Be Bankrupt?
Rhondalynn Korolak, Author of "Financial Foreplay®" and "On The Shoulders of Giants
If you’re a small-mid size business owner and struggling to make your operation both profitable and cash flow positive, don’t beat yourself up too much! Even some of the largest corporations in this country are getting it wrong and stuffing up every day. Take the CBA for example – one of the largest banks in Australia recently announced a $6 billion profit for 2009-10. To put this in context, this equates to around a 17 per cent return on investors’ funds, which is impressive indeed in these tough economic times.
Too bad the CBA is technically bankrupt – meaning they don’t have enough liquid assets to cover the debt as it is coming due.
But how can this be, you might ask? The answer is simpler than you might think and it applies to ALL companies (big and small) – Profit is pointless and cash flow is KING! More businesses in Australia go under every year due to lack of cash flow than any other single reason. No business, even financial institutions which are afforded many governmental protections and safeguards, are exempt from this basic law of the economic jungle.
