It’s important to have key company figures ready from the start of your business, as they’ll be needed for your business plan and for any interviews with potential investors.
These figures can help you keep track of your business’s progress and make any necessary changes along the way.
What Are Company Figures?
Company figures are important information about your business that can be used in determining your business’s financial status and future performance.
They can be used to compare the financial performance of your business to the performance of other businesses in the same industry or to determine the financial effect that changes to your business have on your business and your bottom line.
1) Total Capital
When you’re starting out, it’s essential to make sure you have the money you need to get your business off the ground.
The total capital for your business includes the combined cash and non-cash capital you will use to start the business. This includes the total cash needed to start and operate your business over the next 12 months.
Non-cash capital includes the value of any assets you have that you’ll use in your business, such as vehicles or equipment.
2) Return on Assets (ROA)
The return on assets (ROA) is a business efficiency ratio that measures the profitability of a company’s assets. A company’s ROA is calculated by dividing its operating income, or earnings before interest and taxes (EBIT), by its total assets on its balance sheet.
ROA is a good indicator of how well a company’s management is using its assets to generate income. A high ROA typically indicates a well-managed company.
3) Return on Investment (ROI)
A return on investment (ROI) measures the efficiency of an investment. ROI is calculated by dividing the gain or loss on the investment by the total investment.
ROI is often used in the investment world to help investors determine the efficiency of their current investments and guide new investments.
Your ROI may change as you add more business assets or as you make changes to your business.
4) Cash Flow
Cash flow is the term used to describe the amount of money you receive from sales of your products or services and the amount of money you spend to operate your business.
Basically, cash flow is a measure of how well your business is managing its cash. A positive cash flow indicates that your business is generating sufficient income to cover its expenses. A negative cash flow indicates that your business is not generating enough income to cover its expenses.
5) Gross Profit
Gross profit is a business-performance ratio that measures the profit generated from a company’s sales. It is calculated by subtracting the cost of goods sold from revenue.
Gross profit should be considered when you’re deciding what types of products to sell in your self-service car wash business. Deep cleaners and high-quality car wash products will generate a higher gross profit than basic car wash products.
Conclusion
Car washing business financial statements are designed to help you better understand your business’s finances. They’re also useful in helping you to make decisions about the future of your business.
Build your own car washing business with the help of CCW Solutions. We provide commercial car wash equipment to help you get started. Get in touch with us today!
