Ruth King has over 25 years of experience in the hvacr industry and has worked with contractors, distributors, and manufacturers to help grow their companies and become more profitable. She is president of HVAC Channel TV and holds a Class II (unrestricted) contractors license in Georgia. Ruth has written several books, all of which you can find at https://ruthkinghvac.com/ruths-books/. Contact Ruth at ruthking@hvacchannel.tv or call 770.729.0258
Overhead is any expense the company incurs to stay in business. It doesn’t generate revenue; it sucks up the revenue the field labor produces. But it’s critical for company survival.
Published: 07.06.15
By Ruth King
Gross margin should not vary more than a few points each month. If it does, then you must find out why the margin is varying.
Published: 06.08.15
By Ruth King
While gross profit can vary widely from month to month depending on how busy your company is, gross margin should not vary more than a few points each month.
Published: 05.01.15
By Ruth King
However you decide to categorize expenses in your P&L, it's important to be consistent.
Published: 04.01.15
By Ruth King
Sales are critical to survival — when revenue is actually generated is even more critical.
Published: 03.01.15
By Ruth King
For a realistic goal, include owners’ compensation in the net profit equation.
Published: 02.01.15
By Ruth King
Enact a profit sharing program, rather than a bonus entitlement.
Published: 01.05.15
By Ruth King
Most contractors don’t think about how much time is stolen by employees doing personal activities on company time.
Published: 12.01.14
By Ruth King
If you ignore locking your warehouse and limiting access to it, don’t use material sheets and don’t make your technicians responsible for the inventory on their trucks, you’re inviting theft.
Published: 11.01.14
By Ruth King
Keeping your hard earned money safe is your responsibility. Put the procedures in place to keep the honest people honest and protect yourself from employee embezzlement.
Published: 10.01.14
By Ruth King
If you don’t have systems in place, it’s easy for a stressed out bookkeeper or stressed employee to get tempted. They make stupid choices they never would when thinking rationally.
Published: 09.01.14
By Ruth King
The Inventory Days ratio lets you know how quickly inventory is increasing or decreasing in your business. Since inventory is a bet, it’s important to know how much of your …
Published: 08.01.14
By Ruth King
The Receivable Days ratio tells you whether you have a collection problem or are heading toward one. It lets you know how quickly you’re being paid, and whether you’re being …
Published: 07.01.14
By Ruth King
Even if liquidity ratios are stable or increasing, showing increasing profitability, compensation percentages may show a different story. If compensation percentages start to increase, there’s a productivity problem.
Published: 06.01.14
By Ruth King
Like the liquidity ratios, it’s the trends that are important. The goal is to get your debt to equity ratio stable on a monthly basis.
Published: 05.01.14
By Ruth King
