SlideShare a Scribd company logo
Richard Rinaolo
Introduction
Richard Rinaolo has been managing partner at Phoenix Venture Capital,
LLC, in Illinois, for over 5 years. In this capacity, he manages real estate
investments, meets with prospective entrepreneurs, and oversees investor
relationships. Richard Rinaolo also examines financial statements for
prospective investment opportunities.
Before investing in a business, investors look for key metrics in the
entity’s financial statements. One of these key metrics is profit margins.
Even when a business has plenty of sales, those sales are meaningless if
they are not bringing in any money. Investors want good profit margins
for both the overall company and individual products or services. Higher
margins result in better returns for investors, so a company’s profit
margins are usually compared to other investment opportunities or
industry standards.
Prospective investors are also interested in cash flow. This refers to the
rate at which companies pay out and take in cash. Current cash flow
balances help investors predict the future cash flow of the business, thus
determining its growth potential. They also provide insights into the
business’ debts and the amount it pays in interest each month. Debt is
of particular concern to investors, since debt holders are paid before
equity holders in the event the company goes out of business.

More Related Content

Similar to Key Metrics Prospective Investors Look at in Financial Statements

Joseph Fabiilli | What Venture Capitalists Expect
Joseph Fabiilli | What Venture Capitalists ExpectJoseph Fabiilli | What Venture Capitalists Expect
Joseph Fabiilli | What Venture Capitalists Expect
Joseph Fabiilli
 
Assigned ReadingsChapter 1. Introduction to Corporate Finance C.docx
Assigned ReadingsChapter 1. Introduction to Corporate Finance C.docxAssigned ReadingsChapter 1. Introduction to Corporate Finance C.docx
Assigned ReadingsChapter 1. Introduction to Corporate Finance C.docx
jane3dyson92312
 
Mercer Capital's Value Focus: FinTech Industry | Second Quarter 2016
Mercer Capital's Value Focus: FinTech Industry | Second Quarter 2016  Mercer Capital's Value Focus: FinTech Industry | Second Quarter 2016
Mercer Capital's Value Focus: FinTech Industry | Second Quarter 2016
Mercer Capital
 
REITS - PROCEED WITH CAUTION
REITS - PROCEED WITH CAUTION REITS - PROCEED WITH CAUTION
REITS - PROCEED WITH CAUTION
Stanley Laman Group Ltd
 
LL Realty - How to finance the start-up
LL Realty - How to finance the start-upLL Realty - How to finance the start-up
LL Realty - How to finance the start-up
LL Realty
 
Start ups, Investors and Finance a brief
Start ups, Investors and Finance a brief Start ups, Investors and Finance a brief
Start ups, Investors and Finance a brief
Prashant Sinha
 
Rampver strategic advisors mf
Rampver strategic advisors mfRampver strategic advisors mf
Rampver strategic advisors mf
jrmalagueno
 
Managing Financial Resources
Managing Financial ResourcesManaging Financial Resources
Managing Financial Resources
Ubaid_Ahmed
 
Due Diligence IIn India.docx
Due Diligence IIn India.docxDue Diligence IIn India.docx
Due Diligence IIn India.docx
vigneshvignesh280838
 
Use These Five Step to Ensure the Future Success of Your Business
Use These Five Step to Ensure the Future Success of Your BusinessUse These Five Step to Ensure the Future Success of Your Business
Use These Five Step to Ensure the Future Success of Your Business
Matthew Wirgau
 
Venture capital
Venture capitalVenture capital
Venture capital
Karthik Bharadwaj
 
T- 7 Sources of Finance (2).ppt
T- 7 Sources of Finance (2).pptT- 7 Sources of Finance (2).ppt
T- 7 Sources of Finance (2).ppt
vidhitasinha
 
Finance Essays
Finance EssaysFinance Essays
OPAT_FA_Module 001.pptx
OPAT_FA_Module 001.pptxOPAT_FA_Module 001.pptx
OPAT_FA_Module 001.pptx
Elvis Amenyitor
 
OPAT_FA_Module 001.pptx
OPAT_FA_Module 001.pptxOPAT_FA_Module 001.pptx
OPAT_FA_Module 001.pptx
Elvis Amenyitor
 
chapter 10,11,13.pptx
chapter 10,11,13.pptxchapter 10,11,13.pptx
chapter 10,11,13.pptx
RiyaBatool
 
LPL Financial stability letter
LPL Financial stability letterLPL Financial stability letter
LPL Financial stability letter
Mike Midtvedt
 
PBI-How to Raise Venture Capital
PBI-How to Raise Venture CapitalPBI-How to Raise Venture Capital
PBI-How to Raise Venture Capital
Profit Builders Inc
 
How to Form an Angel or Venture Fund: Legal, Business and Tax Strategies
How to Form an Angel or Venture Fund: Legal, Business and Tax StrategiesHow to Form an Angel or Venture Fund: Legal, Business and Tax Strategies
How to Form an Angel or Venture Fund: Legal, Business and Tax Strategies
ideatoipo
 
Business Function- Finance.pptx
Business Function- Finance.pptxBusiness Function- Finance.pptx
Business Function- Finance.pptx
Shivani. Naik
 

Similar to Key Metrics Prospective Investors Look at in Financial Statements (20)

Joseph Fabiilli | What Venture Capitalists Expect
Joseph Fabiilli | What Venture Capitalists ExpectJoseph Fabiilli | What Venture Capitalists Expect
Joseph Fabiilli | What Venture Capitalists Expect
 
Assigned ReadingsChapter 1. Introduction to Corporate Finance C.docx
Assigned ReadingsChapter 1. Introduction to Corporate Finance C.docxAssigned ReadingsChapter 1. Introduction to Corporate Finance C.docx
Assigned ReadingsChapter 1. Introduction to Corporate Finance C.docx
 
Mercer Capital's Value Focus: FinTech Industry | Second Quarter 2016
Mercer Capital's Value Focus: FinTech Industry | Second Quarter 2016  Mercer Capital's Value Focus: FinTech Industry | Second Quarter 2016
Mercer Capital's Value Focus: FinTech Industry | Second Quarter 2016
 
REITS - PROCEED WITH CAUTION
REITS - PROCEED WITH CAUTION REITS - PROCEED WITH CAUTION
REITS - PROCEED WITH CAUTION
 
LL Realty - How to finance the start-up
LL Realty - How to finance the start-upLL Realty - How to finance the start-up
LL Realty - How to finance the start-up
 
Start ups, Investors and Finance a brief
Start ups, Investors and Finance a brief Start ups, Investors and Finance a brief
Start ups, Investors and Finance a brief
 
Rampver strategic advisors mf
Rampver strategic advisors mfRampver strategic advisors mf
Rampver strategic advisors mf
 
Managing Financial Resources
Managing Financial ResourcesManaging Financial Resources
Managing Financial Resources
 
Due Diligence IIn India.docx
Due Diligence IIn India.docxDue Diligence IIn India.docx
Due Diligence IIn India.docx
 
Use These Five Step to Ensure the Future Success of Your Business
Use These Five Step to Ensure the Future Success of Your BusinessUse These Five Step to Ensure the Future Success of Your Business
Use These Five Step to Ensure the Future Success of Your Business
 
Venture capital
Venture capitalVenture capital
Venture capital
 
T- 7 Sources of Finance (2).ppt
T- 7 Sources of Finance (2).pptT- 7 Sources of Finance (2).ppt
T- 7 Sources of Finance (2).ppt
 
Finance Essays
Finance EssaysFinance Essays
Finance Essays
 
OPAT_FA_Module 001.pptx
OPAT_FA_Module 001.pptxOPAT_FA_Module 001.pptx
OPAT_FA_Module 001.pptx
 
OPAT_FA_Module 001.pptx
OPAT_FA_Module 001.pptxOPAT_FA_Module 001.pptx
OPAT_FA_Module 001.pptx
 
chapter 10,11,13.pptx
chapter 10,11,13.pptxchapter 10,11,13.pptx
chapter 10,11,13.pptx
 
LPL Financial stability letter
LPL Financial stability letterLPL Financial stability letter
LPL Financial stability letter
 
PBI-How to Raise Venture Capital
PBI-How to Raise Venture CapitalPBI-How to Raise Venture Capital
PBI-How to Raise Venture Capital
 
How to Form an Angel or Venture Fund: Legal, Business and Tax Strategies
How to Form an Angel or Venture Fund: Legal, Business and Tax StrategiesHow to Form an Angel or Venture Fund: Legal, Business and Tax Strategies
How to Form an Angel or Venture Fund: Legal, Business and Tax Strategies
 
Business Function- Finance.pptx
Business Function- Finance.pptxBusiness Function- Finance.pptx
Business Function- Finance.pptx
 

More from Richard Rinaolo

About the Circus Fans of America's Local Chapters
About the Circus Fans of America's Local ChaptersAbout the Circus Fans of America's Local Chapters
About the Circus Fans of America's Local Chapters
Richard Rinaolo
 
Impressionism in Music - Claude Debussy
Impressionism in Music - Claude DebussyImpressionism in Music - Claude Debussy
Impressionism in Music - Claude Debussy
Richard Rinaolo
 
Popular Hiking Spots in and around Dallas, Texas
Popular Hiking Spots in and around Dallas, TexasPopular Hiking Spots in and around Dallas, Texas
Popular Hiking Spots in and around Dallas, Texas
Richard Rinaolo
 
Reef Aquariums and Maintaining Live Corals
Reef Aquariums and Maintaining Live CoralsReef Aquariums and Maintaining Live Corals
Reef Aquariums and Maintaining Live Corals
Richard Rinaolo
 
The Birth of the American-Style Circus
The Birth of the American-Style CircusThe Birth of the American-Style Circus
The Birth of the American-Style Circus
Richard Rinaolo
 
LFOLA Dynamic Shore Presentation at the Gorton Center
LFOLA Dynamic Shore Presentation at the Gorton CenterLFOLA Dynamic Shore Presentation at the Gorton Center
LFOLA Dynamic Shore Presentation at the Gorton Center
Richard Rinaolo
 
The Art Institute of Chicago’s Teen Lab Program
The Art Institute of Chicago’s Teen Lab Program The Art Institute of Chicago’s Teen Lab Program
The Art Institute of Chicago’s Teen Lab Program
Richard Rinaolo
 
Up and Coming at the Art Institute of Chicago
Up and Coming at the Art Institute of ChicagoUp and Coming at the Art Institute of Chicago
Up and Coming at the Art Institute of Chicago
Richard Rinaolo
 

More from Richard Rinaolo (8)

About the Circus Fans of America's Local Chapters
About the Circus Fans of America's Local ChaptersAbout the Circus Fans of America's Local Chapters
About the Circus Fans of America's Local Chapters
 
Impressionism in Music - Claude Debussy
Impressionism in Music - Claude DebussyImpressionism in Music - Claude Debussy
Impressionism in Music - Claude Debussy
 
Popular Hiking Spots in and around Dallas, Texas
Popular Hiking Spots in and around Dallas, TexasPopular Hiking Spots in and around Dallas, Texas
Popular Hiking Spots in and around Dallas, Texas
 
Reef Aquariums and Maintaining Live Corals
Reef Aquariums and Maintaining Live CoralsReef Aquariums and Maintaining Live Corals
Reef Aquariums and Maintaining Live Corals
 
The Birth of the American-Style Circus
The Birth of the American-Style CircusThe Birth of the American-Style Circus
The Birth of the American-Style Circus
 
LFOLA Dynamic Shore Presentation at the Gorton Center
LFOLA Dynamic Shore Presentation at the Gorton CenterLFOLA Dynamic Shore Presentation at the Gorton Center
LFOLA Dynamic Shore Presentation at the Gorton Center
 
The Art Institute of Chicago’s Teen Lab Program
The Art Institute of Chicago’s Teen Lab Program The Art Institute of Chicago’s Teen Lab Program
The Art Institute of Chicago’s Teen Lab Program
 
Up and Coming at the Art Institute of Chicago
Up and Coming at the Art Institute of ChicagoUp and Coming at the Art Institute of Chicago
Up and Coming at the Art Institute of Chicago
 

Recently uploaded

ModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
ModelingMarketingStrategiesMKS.CollumbiaUniversitypdfModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
ModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
fisherameliaisabella
 
Chapter 7 Final business management sciences .ppt
Chapter 7 Final business management sciences .pptChapter 7 Final business management sciences .ppt
Chapter 7 Final business management sciences .ppt
ssuser567e2d
 
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdfikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
agatadrynko
 
ikea_woodgreen_petscharity_cat-alogue_digital.pdf
ikea_woodgreen_petscharity_cat-alogue_digital.pdfikea_woodgreen_petscharity_cat-alogue_digital.pdf
ikea_woodgreen_petscharity_cat-alogue_digital.pdf
agatadrynko
 
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraTata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Avirahi City Dholera
 
Industrial Tech SW: Category Renewal and Creation
Industrial Tech SW:  Category Renewal and CreationIndustrial Tech SW:  Category Renewal and Creation
Industrial Tech SW: Category Renewal and Creation
Christian Dahlen
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
marketing317746
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
Adam Smith
 
Recruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media MasterclassRecruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media Masterclass
LuanWise
 
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
taqyea
 
Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024
Kirill Klimov
 
-- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month ---- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month --
NZSG
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
Adam Smith
 
Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024
Top Forex Brokers Review
 
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
my Pandit
 
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel ChartSatta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
Business storytelling: key ingredients to a story
Business storytelling: key ingredients to a storyBusiness storytelling: key ingredients to a story
Business storytelling: key ingredients to a story
Alexandra Fulford
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
SEOSMMEARTH
 
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
Lviv Startup Club
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
thesiliconleaders
 

Recently uploaded (20)

ModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
ModelingMarketingStrategiesMKS.CollumbiaUniversitypdfModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
ModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
 
Chapter 7 Final business management sciences .ppt
Chapter 7 Final business management sciences .pptChapter 7 Final business management sciences .ppt
Chapter 7 Final business management sciences .ppt
 
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdfikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
 
ikea_woodgreen_petscharity_cat-alogue_digital.pdf
ikea_woodgreen_petscharity_cat-alogue_digital.pdfikea_woodgreen_petscharity_cat-alogue_digital.pdf
ikea_woodgreen_petscharity_cat-alogue_digital.pdf
 
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraTata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
 
Industrial Tech SW: Category Renewal and Creation
Industrial Tech SW:  Category Renewal and CreationIndustrial Tech SW:  Category Renewal and Creation
Industrial Tech SW: Category Renewal and Creation
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
 
Recruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media MasterclassRecruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media Masterclass
 
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
 
Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024
 
-- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month ---- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month --
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
 
Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024
 
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
 
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel ChartSatta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
 
Business storytelling: key ingredients to a story
Business storytelling: key ingredients to a storyBusiness storytelling: key ingredients to a story
Business storytelling: key ingredients to a story
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
 
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
 

Key Metrics Prospective Investors Look at in Financial Statements

  • 2. Introduction Richard Rinaolo has been managing partner at Phoenix Venture Capital, LLC, in Illinois, for over 5 years. In this capacity, he manages real estate investments, meets with prospective entrepreneurs, and oversees investor relationships. Richard Rinaolo also examines financial statements for prospective investment opportunities.
  • 3. Before investing in a business, investors look for key metrics in the entity’s financial statements. One of these key metrics is profit margins. Even when a business has plenty of sales, those sales are meaningless if they are not bringing in any money. Investors want good profit margins for both the overall company and individual products or services. Higher margins result in better returns for investors, so a company’s profit margins are usually compared to other investment opportunities or industry standards.
  • 4. Prospective investors are also interested in cash flow. This refers to the rate at which companies pay out and take in cash. Current cash flow balances help investors predict the future cash flow of the business, thus determining its growth potential. They also provide insights into the business’ debts and the amount it pays in interest each month. Debt is of particular concern to investors, since debt holders are paid before equity holders in the event the company goes out of business.