This is the professional website of
Stephen M. Bartoletti, Senior Banking Advisor and specialist in SME lending.
The primary purpose of this website is to announce the new framework for visualizing cash flow in SMEs. Cash Cycle theory led to the startling discovery that there is a flaw in the balance sheet—a missing account!
The Article: The flaw and proposed solutions were first announced in the April 2012 issue of the Journal of Accountancy: The Missing Piece in Liquidity Calculations -- why calculating the "current portion of fixed assets" would provide a more accurate picture of financial health
The article illustrates how the traditional formulas for Current Ratio and Working Capital routinely understate liquidity. (spoiler alert! negative working capital is usually not negative!) The article proceeds to illustrate how CPFA—the current portion of fixed assets—corrects the flaw, thereby providing for the first time, truly useful measures of liquidity.
The Book: The discovery of CPFA is only one of several revelations that emerge from the new Cash cycle theory. The book provides the complete framework, practical applications, and the benefits of cash cycle theory. Click the Book tab above or the title below for more information, including a table of contents:
Cash Flow 3.0—Advances in Cash Flow Lending based on Sustainable Cycles
Now Available on Amazon.com
Presentations/Courses: The author is available to conduct brief speaker presentations (gratis) for business associations and university courses, or multi-day training seminars. (“Courses” tab above)
The Forum If you have read the article or the book, join the discussion! Express your own opinion and read what others think!
© Bartoletti www.SME-lending.com August 2013