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  • Writer's pictureRenzo Mazzini

Operating Solvency

On a budget cycle, the operating solvency captures the ability to pay over a term and includes the operating ratio, earnings per user (lets see you are measuring client’s response to a product), and the fund balance (net worth) as a percent of expenditures.

So let me ask you, if you have a drop on earnings per user, what has caused such drop? Your cash flow limitations? spending too much? why? any reason? Do you know your fund balance is becoming the victim on this?

What are your plans to turn this around?


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