WELCOME TO ISSUE NO #08

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📆 Today’s Rundown

Happy Saturday! This week I’ve compiled some amazing resources that will definitely impress you.

TL;DR

• 💰 Cash is King or Queen?

• 👉 10 Tips to Overcome FP&A Challenges in SaaS

• 📊 The XLOOKUP Power

• I’ve partnered with my friend David Fortin to bring you an incredible opportunity to excel your career & your business with AI. More details below.

• My friend Josh Aharonoff launched his new Excel Plugin - Model Wiz and finance pro’s & founders are amazed. So if you’re looking to elevate your career or business, check it out below.

• I’d love to get your thoughts on this week’s poll. Share your thoughts below!

👇️ Watch: Excel GROUPBY & PIVOTBY Functions by Leila

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Cash is King or Queen? 👑 

In the kingdom of business, cash flow reigns supreme, dictating the pace at which a company grows and sustains itself.

Enter the cash conversion cycle (CCC), a vital metric that reveals how quickly a company transforms its inventory investments into cold, hard cash.

How’s CCC measured?

As stated above, CCC measures the length of time each net input dollar is tied up in the production and sales process before it gets converted into cash received.

This metric takes into account the time needed to:

• Sell the inventory,

• Collect receivables, and

• Pay the bills.

CCC = DIO + DSO - DPO

To go a step further, you need to know your Days Sales Outstanding, Days Inventory Outstanding, and Days Payables Outstanding. It looks complicated, but it’s really not - just some simple division.

• DIO = Days Inventory Outstanding = ($ Inventory / $ COGS) * Days in that period

• DSO = Days Sales Outstanding = ($ Accts Receivable / $ Revenue) * Days in that period

• DPO = Days Payable Outstanding = ($ Accounts Payable / $ Cost of Goods Sold) * Days in that period

Why it matters?

A shorter CCC means more cash on hand to fuel growth, enabling businesses like Gymshark to finance their expansion effectively and efficiently. This is crucial in outmaneuvering larger, well-capitalized competitors.

Practical Tips to Optimize Your CCC:

1. Accelerate Collections: Try to collect payments upfront or reduce payment terms to speed up cash inflow.

2. Extend Payables: Negotiate longer payment terms with suppliers to keep cash longer.

3. Streamline Inventory: Reduce DIO by optimizing inventory levels and turnover rates.

Remember, mastering your CCC can provide a strategic advantage by improving cash flow and reducing the need for external funding. So, whether cash is king or queen in your book, its rule is undeniable in the business realm.

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The XLOOKUP Power

Ever felt lost in a sea of Excel data? Meet your new navigator: the XLOOKUP function. This Excel feature is not just a tool—it's a game changer for anyone who regularly dives into spreadsheets.

Whether you're reconciling data, analyzing reports, or just trying to make sense of numbers, XLOOKUP simplifies your workflow.

How XLOOKUP Works

XLOOKUP is designed to search for a value within a range and return a corresponding value from a different range based on specific criteria. It's your go-to function for efficient data retrieval, allowing you to:

• Search Any Direction: Works vertically or horizontally.

• Dynamic Arrays: Adjusts automatically when data is added.

• Error Handling: Manages errors seamlessly without separate functions.

• Multi-value Returns: Can retrieve more than just a single data point.

• Wildcard Compatibility: Enhances search capabilities.

• Reverse Searches: Offers flexibility with a reverse search option.

Syntax Deep Dive

The XLOOKUP syntax is straightforward:

=XLOOKUP(lookup_value, lookup_array, return_array, [if_not_found], [match_mode])

• Lookup Value: The data you want to find.

• Lookup Array: Where to find it.

• Return Array: Where to pull data from once a match is found.

• Optional settings allow customization for unmatched items or specific match types.

Curious to see XLOOKUP in action?

Check out this detailed infographic via the link here for a high-resolution GIF.

If you’re looking to elevate your career or your business, check out Excel Plugin - Model Wiz by Josh.

These are the templates that made Josh skyrocket his career & his business, too.

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