WSA Professional Training

The Ultimate Finance Formula Cheat Sheet

Need to brush up on finance formulas without getting lost in complexity? I got you.

Inside, you’ll find clear, practical explanations of 20+ essential formulas, including:
NPV & ROI
WACC & CAPM
EPS, EV, Beta, Sharpe Ratio
Quick Ratio, Payback Period, and more

Source: Dhairya Kharbanda & Anish Gazi

Whether you're calculating investment returns or analyzing company performance, this cheat sheet is your new go-to reference.

Finance isn’t just about numbers—it’s about strategy.

And while the CFO may own the spreadsheets, every leader owns the decisions that impact those numbers:

▷ The CEO sets the vision but needs a strategic financial plan to drive business objectives.

▷ The board makes key decisions but can’t act without knowing the financial reality.

▷ The CMO spends on campaigns but must understand return on investment and invested capital to justify the budget.

▷ The COO runs operations but must align efficiency with cash flow.

Finance is the common thread that ties every executive role together.

It’s not just about P&Ls or balance sheets—it’s about asking:
Are we generating sustainable cash flow?
Are we investing in the right priorities?
Are we creating long-term value?

Here’s what business leaders need to know:

1️⃣ Profits Aren’t Cash
Revenue growth and EBITDA are great, but they don’t pay bills.
Cash flow is what fuels operations, growth, and resilience.

2️⃣ Not All Revenue is Equal
High-margin customers and products drive sustainable growth.
Savvy leaders know where to double down—and what to cut.

3️⃣ Growth Can Kill
Scaling too fast without understanding cash burn is a recipe for disaster. Financial acumen ensures growth is sustainable.

4️⃣ Debt Is a Double-Edged Sword
Leverage can amplify returns—or sink the business.
Skilled executives know when debt is a tool and when it’s a trap.

5️⃣ Every Decision Impacts Valuation
From hiring to product launches, every move affects business valuation.

Leaders who understand this will align daily decisions with long-term goals.

Here’s the bottom line:

💡 If you’re not connecting your financial plans with your business objectives, you won’t get where you’re going.

Financial literacy isn’t a skill you delegate.
It’s the foundation of great leadership.
Because Finance isn’t for CFOs.
It’s for every leader.

Reasons for failure

Success in a business is never spontaneous or based on luck, and as said, this success mainly depends on a person's careful organization and insight.
Starting a business is always risky, according to the US Small Business Administration, more than 50% of small businesses fail in their first year, and 90% of them fail in the first five years. Some reasons for entrepreneurial failure:

1- Lack of experience
2- Not having enough capital
3- Not having a suitable position
4- Absence of strong control
5- Investing too much in fixed assets
6- Weak credit contracts
7- Personal use of business funds
8- Growth without expectation
9- Competition
10- Low sales