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Supply chain owed £3.8m after collapse of London builder

Construction Enquirer

Suppliers left holding unpaid invoices are unlikely to receive a penny for their debts. Management accounts to December 31 2021 showed a turnover of £17m generating a net profit of £177,000. Its civils arm MEC Groundworks also went into liquidation owing more than £100,000 to unsecured creditors.

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Key Financial & Safety Metrics for Subcontractor Qualification 

Autodesk Construction Cloud

The following standard financial ratios can help risk management teams evaluate potential trade partners during the subcontractor qualification process. Formula: (Cash and Cash Equivalents + Marketable Securities + Accounts Receivables) / Current Liabilities . Accounts Receivable Turnover . FINANCIAL RATIOS: DEBT .

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Types of Capital for Construction Businesses

Levelset

Several different types of capital — working capital , debt capital , and equity capital — are common in the construction industry. Construction companies need to know the differences between the three types of capital and why each one is useful for managing and growing a business. Debt capital. Working capital.

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How To Manage Your Construction Firm's Cash Flow During Crisis

Contractor Bookkeeping

You also need to know about any substantial invoices that are in dispute, particularly overdue debts and clients exceeding their credit limits. If you have a properly set up accounting software , then it should be relatively easy to view your red flags weekly, monthly (or any period you set).

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Student Loans Keep 29% of Americans From Becoming Homeowners, Survey Finds

Pro Builder

In a new survey by the National Association of Realtors (NAR), 54% of student-loan borrowers said the pandemic allowed them to get a better handle on their student debt or allowed them to pay it off earlier than planned. That study suggested that some 400,000 people were unable to become homeowners as a result of their student debt.

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Construction Bad Debt What To Do About It

Contractor Bookkeeping

All construction contractors have experienced the financial pain of bad debt which is defined as a customer who refuses to pay no matter what you do. Owning and operating any business including accounting means sometimes you provide goods and services and not get paid. Knowing The Answers Helps. Answer #2 - The Two Percent Rule.

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Accounting Basics for Small Contractors — Benchmarking

Contractor Magazine

Debt-to-equity ratio? In this installment of Accounting Basics for Small Contractors, we’ll look at specific KPIs (Key Performance Indicators) (aka benchmarks) that contractors should be monitoring. BY MICHAEL BOHINC, CPA. Do you know your current ratio? How often assets turn over?