Jon Chancey Featured in CentrAL Inc!
Jon Chancey, CPA, a Member in the Audit Division of the firm’s Montgomery accounting and advisory office, recently contributed an article to CentrAL INC!
CentrAL INC! is a bimonthly publication that covers pertinent topics, trends and concerns that impact businesses in Montgomery and surrounding counties.
In his article, Six Ways Manufacturing Companies Should Measure Financial Health, Jon explores how manufacturing companies can transform the data from their financial and operational activities into actionable insights to improve their businesses.
By assessing their ability to meet short-term obligations, evaluating equipment efficiency, determining creditworthiness, identifying profitable products, tracking product defects and analyzing labor efficiency, business owners can effectively measure their financial health and make the best decisions for their company’s future.
Regarding the importance of determining creditworthiness, Jon says: “Assess your financial leverage by comparing your company’s total debt to your shareholders’ equity. A lower leverage ratio indicates a healthier balance between debt and equity, reducing financial risk. Manufacturing companies should monitor this ratio to ensure you are not overly reliant on debt financing, which can lead to financial instability.”
Jon Chancey joined the firm in 2000. He serves as the firm’s Regional Industry Leader for manufacturing and distribution in Central and South Alabama. He serves closely held and private-equity-backed businesses in several industries, including construction, agri-businesses and manufacturing and distribution. He focuses on providing clients with operational and compliance services and leading clients’ strategic planning to higher levels of effectiveness.
Learn more about the firm’s Manufacturing & Distribution Industry Group and our Montgomery CPAs and advisors.
Read the full article on CentrAL INC!’s website here.