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How to Build Your Firm's Wealth

Construction Business Owner

You are in business to make a profit, build equity, seek wealth-building opportunities, and enjoy the benefits of owning a successful business. Fri, 01/29/2021 - 10:39. Your business’s purpose is not to build buildings, install pipe, hang drywall, pour concrete, erect steel or move dirt.

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5 Ways to Stop Your Company’s Money Leaks & Blockages

Construction Business Owner

Imagine your company as a funnel with a shut-off valve controlling the flow of profit output. The funnel absorbs and reduces the profit output by paying invoices for job costs and overhead expenses. The leftover flow is net profit cash exiting the end of the funnel into your equity account.

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professionals

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Bowmer & Kirkland retains strong cash despite margin slip

Construction Enquirer

Derby-based building contractor Bowmer & Kirkland returned stable revenue and profit last year despite more challenging market conditions. Turnover was stable at £1.15bn, while trading profit fell by just over 22% to £47m as overall group margin slid from 5% to 4% in the tighter market.

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Key Financial & Safety Metrics for Subcontractor Qualification 

Autodesk Construction Cloud

Debt-to-Equity . Debt-to-Equity measures how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. Formula: Total Liabilities / Total Shareholders’ Equity . Debt (Less Cash) to Equity . FINANCIAL RATIOS: PROFITABILITY . Gross Profit Margin .

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Contractors May Benefit by Taking Equity in the Project They are Constructing

Construction and Infrastructure Law

Contractors may benefit in making a small equity investment in the projects they construct. In the past, it was not unusual for construction companies to make small equity investments in the projects they worked on. For example, a construction company building a power plant would take a 5% equity interest in the project.

Equity 40
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Rising Home Values Are Giving U.S. Homeowners Record High Housing Wealth

Pro Builder

Nearly half of all homeowners were considered equity-rich at the end of 2021 after a $2.6 trillion gain in tappable equity. Even those not listing their homes for sale gained significant equity. At the end of 2021, 42% of homeowners were considered equity-rich with mortgages half or less than half the value of their homes.

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Expiration of Mortgage Bailout Programs Unlikely to Cause Foreclosure Crisis

Pro Builder

But 98% of those troubled borrowers now have at least 10% equity in their homes, not counting their missed payments. Including those payments, 93% still have more than 10% equity. Given today’s tight housing market, the majority could easily sell and still pocket some profit. 1 trillion in ‘tappable equity’.

Equity 52