Michael

We’ve already covered how to analyze the effectiveness and efficiency of a business, which when combined, will help us evaluate the overall return on investment of a company. However, knowing ROI of a company is not enough. Even though we want to make money from our investment into a company, we definitely don’t want to lose money. 

And the prerequisite of not losing money is that the company must sustain its business operations, i.e. it must have the ability to pay back its debt.

In this episode, let’s look at how to evaluate a company’s ability to deal with liabilities.

If you recall on balance sheet, all liabilities are divided into two parts: current liabilities and non-current liabilities. Current liabilities refer to those debts to be repaid within one year, and non-current liabilities refer to those longer than one year. 

In a similar fashion, we will also categorize the ability to pay back debts into current (or short term) and non-current (or long term). Let’s first look at the ability to pay back short term debt.

Short term debt repayment capacity

The capacity to repay short term debt measures a company’s ability to deal with current liabilities. 

What do current liabilities consist of?

For instance,we may need to pay suppliers money, or accounts payable. If we want to pay suppliers, what is the most appropriate source of money, other than cash?

We won’t be able to apply for a new loan from the bank to pay the suppliers, as it will take too much time. 

If I tell the supplier that I will invest in a project and pay him after the project earns money, he definitely won’t wait.

So where should the payment come from?

If I have cash in hand, that would be perfect. But if I don’t have cash, what I can do is to look at assets that can be easily converted into cash. For example, I can sell products in inventory and collect accounts receivables, both of which are current assets. In fact, for paying suppliers, the most common cash flow comes from current assets.

Let’s make the most optimistic assumption. Let’s assume that all current assets can turn into cash instantly. The amount of potential cash I can use will be the total of all current assets. By dividing current assets by current liabilities, we can get a measure called current ratio to help us evaluate a company’s short-term debt repayment capacity. The higher the ratio, the stronger its ability to repay current liabilities.

Yet this calculation method is based on a very optimistic assumption, i.e. all current assets can turn into cash instantaneously. In reality though, this is impossible. So we need a more conservative and realistic method.

Amongst all current assets, the slowest asset that can be turned into cash is inventory. The reason is that we will need to first sell inventory and acquire accounts receivables, which will become cash upon collection. If we use the most conservative estimation that NO inventory will become cash at all, we should deduct all inventory from current assets before dividing it with current liabilities. The result is a more conservative estimation of a company’s capacity to repay short-term debt called quick ratio.

Let’s work on an example of current ratio and quick ratio of our fictional company. 

The company’s current assets are 40.7 million dollars, and its current liabilities are 63 million dollars. By dividing the former by the latter, we will get the current ratio of 0.65. 

The quick ratio should be calculated after deducting inventory from current assets. Since the company’s inventory is 5 million, the result will be 35.7 million after the deduction, making the quick ratio at 0.57.

Making sense of current ratio and quick ratio

Now that we’ve already understood how to calculate current ratio and quick ratio, how do we make sense of them, i.e. what kind of current ratio and quick ratio would be acceptable, safe, and desirable for a company?

If the current ratio of a company is 1, would that company be in danger of insolvency? How is its capability to pay back short term liabilities?

We’ve already mentioned that the current ratio is based on the most optimistic assumption that all current assets can be converted into cash instantaneously. However, that’s simply not the case in reality. If, for example, we are desperate to sell our products in order to repay debt, we will almost definitely need to apply a discount. Besides, some account receivables may never be collected. Therefore, if the current ratio is 1, we may actually be in danger. 

Despite all the above issues, there could be another problem if the current ratio is 1: even if all current assets become cash instantly to cover all current liabilities, there won’t be any cash or inventory left for future operations. The company will still need to file for bankruptcy. 

Current assets have two roles in a company’s operations. One is to cover current liabilities repayment, and the other is to provide fund for daily operations. 

It seems that a current ratio of 1 is not enough. But what about 2? 

If you’ve encountered certain accounting books, some of them might have mentioned that a current ratio of 2 would be ideal. It certainly sounds legit: since the roles of current assets are to repay current debts and sustain daily operations, having twice the amount of current liabilities as current assets certainly sounds safe.

But is it the case? Let’s look at a graph. 

In this graph, the y-axis represents current ratio, and the x-axis represents number of years before bankruptcy. The line at the top of the graph represents healthy companies, while the line at the bottom represents bankrupt companies. From this graph, we can see that the current ratios of healthy companies are always higher than those of bankrupt companies, regardless of which year. 

In addition, the average of bankrupt companies is actually around 2, even for the year before their actual bankruptcy! This directly contradicts what books have told us. So if you believe in this number and operate your company accordingly, you may make lots of mistakes and put your company on the line.

Then can we conclude that having a current ratio of 3 or 4 would be ideal? 

Well if you are operating a business in the United States, that would certainly be the case, as this graph is based on data within the country. However, if you are operating in other countries such as China, you might be too conservative. Let me tell you why.

In China , even current ratios of most healthy companies are between 1 and 2, lower than those of bankrupt companies in the US. This is because banks in China don’t grant long-term loans, but they extend short-term loans multiple times, which are essentially the same as long-term loans. In other words, the source of funds to pay off current liabilities is not current assets, but new current liabilities. Under such a model, companies won’t face serious problems even with relatively low current ratios.

@import url(“https://assets.mlcdn.com/fonts.css?version=1714030″); /* LOADER */ .ml-form-embedSubmitLoad { display: inline-block; width: 20px; height: 20px; } .g-recaptcha { transform: scale(1); -webkit-transform: scale(1); transform-origin: 0 0; -webkit-transform-origin: 0 0; height: ; } .sr-only { position: absolute; width: 1px; height: 1px; padding: 0; margin: -1px; overflow: hidden; clip: rect(0,0,0,0); border: 0; } .ml-form-embedSubmitLoad:after { content: ” “; display: block; width: 11px; height: 11px; margin: 1px; border-radius: 50%; border: 4px solid #fff; border-color: #ffffff #ffffff #ffffff transparent; animation: ml-form-embedSubmitLoad 1.2s linear infinite; } @keyframes ml-form-embedSubmitLoad { 0% { transform: rotate(0deg); } 100% { transform: rotate(360deg); } } #mlb2-14362251.ml-form-embedContainer { box-sizing: border-box; display: table; margin: 0 auto; position: static; width: 100% !important; } #mlb2-14362251.ml-form-embedContainer h4, #mlb2-14362251.ml-form-embedContainer p, #mlb2-14362251.ml-form-embedContainer span, #mlb2-14362251.ml-form-embedContainer button { text-transform: none !important; letter-spacing: normal !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper { background-color: #f6f6f6; border-width: 0px; border-color: transparent; border-radius: 4px; border-style: solid; box-sizing: border-box; display: inline-block !important; margin: 0; padding: 0; position: relative; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedPopup, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedDefault { width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedForm { max-width: 100%; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-left { text-align: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-center { text-align: center; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-default { display: table-cell !important; vertical-align: middle !important; text-align: center !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-right { text-align: right; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedHeader img { border-top-left-radius: 4px; border-top-right-radius: 4px; height: auto; margin: 0 auto !important; max-width: 100%; width: 990px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody { padding: 20px 20px 0 20px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody.ml-form-embedBodyHorizontal { padding-bottom: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent { text-align: left; margin: 0 0 20px 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent h4, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent h4 { color: #1F5014; font-family: ‘Anton’, sans-serif; font-size: 30px; font-weight: 400; margin: 0 0 10px 0; text-align: center; word-break: break-word; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p { color: #000000; font-family: ‘Palatino Linotype’, ‘Book Antiqua’, Palatino, serif; font-size: 18px; font-weight: 400; line-height: 24px; margin: 0 0 10px 0; text-align: center; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ul, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ul, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol { color: #000000; font-family: ‘Palatino Linotype’, ‘Book Antiqua’, Palatino, serif; font-size: 18px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol ol { list-style-type: lower-alpha; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol ol ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol ol ol { list-style-type: lower-roman; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p a, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p a { color: #000000; text-decoration: underline; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-block-form .ml-field-group { text-align: left!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-block-form .ml-field-group label { margin-bottom: 5px; color: #333333; font-size: 14px; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; font-weight: bold; font-style: normal; text-decoration: none;; display: inline-block; line-height: 20px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p:last-child, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p:last-child { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody form { margin: 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow { margin: 0 0 20px 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow { float: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent.horozintalForm { margin: 0; padding: 0 0 20px 0; width: 100%; height: auto; float: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow { margin: 0 0 10px 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow.ml-last-item { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow.ml-formfieldHorizintal { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; height: auto; line-height: 21px !important; margin-bottom: 0; margin-top: 0; margin-left: 0; margin-right: 0; padding: 10px 10px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input::-webkit-input-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input::-webkit-input-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input::-moz-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input::-moz-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input:-ms-input-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input:-ms-input-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input:-moz-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input:-moz-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow textarea, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow textarea { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; height: auto; line-height: 21px !important; margin-bottom: 0; margin-top: 0; padding: 10px 10px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { border-color: #cccccc!important; background-color: #ffffff!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input.custom-control-input[type=”checkbox”]{ box-sizing: border-box; padding: 0; position: absolute; z-index: -1; opacity: 0; margin-top: 5px; margin-left: -1.5rem; overflow: visible; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { border-radius: 4px!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=checkbox]:checked~.label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox input[type=checkbox]:checked~.label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox input[type=checkbox]:checked~.label-description::after { background-image: url(“data:image/svg+xml,%3csvg xmlns=’http://www.w3.org/2000/svg’ viewBox=’0 0 8 8’%3e%3cpath fill=’%23fff’ d=’M6.564.75l-3.59 3.612-1.538-1.55L0 4.26 2.974 7.25 8 2.193z’/%3e%3c/svg%3e”); } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::after { background-image: url(“data:image/svg+xml,%3csvg xmlns=’http://www.w3.org/2000/svg’ viewBox=’-4 -4 8 8’%3e%3ccircle r=’3′ fill=’%23fff’/%3e%3c/svg%3e”); } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox input[type=checkbox]:checked~.label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox input[type=checkbox]:checked~.label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=checkbox]:checked~.label-description::before { border-color: #000000!important; background-color: #000000!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::after { top: 2px; box-sizing: border-box; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::after { top: 0px!important; box-sizing: border-box!important; position: absolute; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-control-label::before { position: absolute; top: 4px; left: -1.5rem; display: block; width: 16px; height: 16px; pointer-events: none; content: “”; background-color: #ffffff; border: #adb5bd solid 1px; border-radius: 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-control-label::after { position: absolute; top: 2px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { position: absolute; top: 4px; left: -1.5rem; display: block; width: 16px; height: 16px; pointer-events: none; content: “”; background-color: #ffffff; border: #adb5bd solid 1px; border-radius: 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after { position: absolute; top: 0px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { position: absolute; top: 0px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-radio .custom-control-label::after { background: no-repeat 50%/50% 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-checkbox .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { background: no-repeat 50%/50% 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-control, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-control { position: relative; display: block; min-height: 1.5rem; padding-left: 1.5rem; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input { position: absolute; z-index: -1; opacity: 0; box-sizing: border-box; padding: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label { color: #000000; font-size: 12px!important; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; line-height: 22px; margin-bottom: 0; position: relative; vertical-align: top; font-style: normal; font-weight: 700; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-select, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-select { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; line-height: 20px !important; margin-bottom: 0; margin-top: 0; padding: 10px 28px 10px 12px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; height: auto; display: inline-block; vertical-align: middle; background: url(‘https://assets.mlcdn.com/ml/images/default/dropdown.svg’) no-repeat right .75rem center/8px 10px; -webkit-appearance: none; -moz-appearance: none; appearance: none; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow { height: auto; width: 100%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal { width: 70%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-button-horizontal { width: 30%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-button-horizontal.labelsOn { padding-top: 25px; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .horizontal-fields { box-sizing: border-box; float: left; padding-right: 10px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input { background-color: #ffffff; color: #333333; border-color: #cccccc; border-radius: 4px; border-style: solid; border-width: 1px; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px; line-height: 20px; margin-bottom: 0; margin-top: 0; padding: 10px 10px; width: 100%; box-sizing: border-box; overflow-y: initial; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow button { background-color: #000000 !important; border-color: #000000; border-style: solid; border-width: 1px; border-radius: 4px; box-shadow: none; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; font-weight: 700; line-height: 20px; margin: 0 !important; padding: 10px !important; width: 100%; height: auto; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow button:hover { background-color: #1F5014 !important; border-color: #1F5014 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=”checkbox”] { box-sizing: border-box; padding: 0; position: absolute; z-index: -1; opacity: 0; margin-top: 5px; margin-left: -1.5rem; overflow: visible; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description { color: #000000; display: block; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; font-size: 12px; text-align: left; margin-bottom: 0; position: relative; vertical-align: top; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label { font-weight: normal; margin: 0; padding: 0; position: relative; display: block; min-height: 24px; padding-left: 24px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label a { color: #000000; text-decoration: underline; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label p { color: #000000 !important; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif !important; font-size: 12px !important; font-weight: normal !important; line-height: 18px !important; padding: 0 !important; margin: 0 5px 0 0 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label p:last-child { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit { margin: 0 0 20px 0; float: left; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button { background-color: #000000 !important; border: none !important; border-radius: 4px !important; box-shadow: none !important; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif !important; font-size: 14px !important; font-weight: 700 !important; line-height: 21px !important; height: auto; padding: 10px !important; width: 100% !important; box-sizing: border-box !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button.loading { display: none; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button:hover { background-color: #1F5014 !important; } .ml-subscribe-close { width: 30px; height: 30px; background: url(‘https://assets.mlcdn.com/ml/images/default/modal_close.png’) no-repeat; background-size: 30px; cursor: pointer; margin-top: -10px; margin-right: -10px; position: absolute; top: 0; right: 0; } .ml-error input, .ml-error textarea, .ml-error select { border-color: red!important; } .ml-error .custom-checkbox-radio-list { border: 1px solid red !important; border-radius: 4px; padding: 10px; } .ml-error .label-description, .ml-error .label-description p, .ml-error .label-description p a, .ml-error label:first-child { color: #ff0000 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow.ml-error .label-description p, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow.ml-error .label-description p:first-letter { color: #ff0000 !important; } @media only screen and (max-width: 400px){ .ml-form-embedWrapper.embedDefault, .ml-form-embedWrapper.embedPopup { width: 100%!important; } .ml-form-formContent.horozintalForm { float: left!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow { height: auto!important; width: 100%!important; float: left!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal { width: 100%!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal > div { padding-right: 0px!important; padding-bottom: 10px; } .ml-form-formContent.horozintalForm .ml-button-horizontal { width: 100%!important; } .ml-form-formContent.horozintalForm .ml-button-horizontal.labelsOn { padding-top: 0px!important; } } .ml-mobileButton-horizontal { display: none; } #mlb2-14362251 .ml-mobileButton-horizontal button { background-color: #000000 !important; border-color: #000000 !important; border-style: solid !important; border-width: 1px !important; border-radius: 4px !important; box-shadow: none !important; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif !important; font-size: 14px !important; font-weight: 700 !important; line-height: 20px !important; padding: 10px !important; width: 100% !important; } @media only screen and (max-width: 400px) { #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent.horozintalForm { padding: 0 0 10px 0 !important; } .ml-hide-horizontal { display: none !important; } .ml-form-formContent.horozintalForm .ml-button-horizontal { display: none!important; } .ml-mobileButton-horizontal { display: inline-block !important; margin-bottom: 20px;width:100%; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal > div { padding-bottom: 0px !important; } } @media only screen and (max-width: 400px) { .ml-form-formContent.horozintalForm .ml-form-horizontalRow .horizontal-fields { margin-bottom: 10px !important; width: 100% !important; } }

function ml_webform_success_14362251() { var $ = ml_jQuery || jQuery; $(‘.ml-subscribe-form-14362251 .row-success’).show(); $(‘.ml-subscribe-form-14362251 .row-form’).hide(); } fetch(“https://assets.mailerlite.com/jsonp/918262/forms/119753320103413631/takel”)

Return on Investment is dependent on two things: effectiveness and efficiency. To measure effectiveness, we can use gross profit ratio and net profit ratio. To measure efficiency, we can use total assets turnover. Now we will talk a little bit more about the total assets turnover. 

Turnover is a measure of business operations capacity

Generally speaking, we use turnover as a measure of business operation capacity. We’ve already talked about total asset turnover, but there are different types of assets. As a matter of fact, we can actually calculate turnover for every asset.

Just like how we calculate total assets turnover, which is revenue divided by total assets, we can calculate different asset turnovers by having revenue divided by an asset. This is the turnover ratio for a specific asset.

For example, by using revenue divided by account receivables, we can get accounts receivable turnover, which is a measure of accounts receivable efficiency. Similarly, if we divide revenue with current asset, we can get current asset turnover, which is a measure of current asset efficiency. And revenue divided by fixed assets is called fixed assets turnover.

The only exception is inventory. Even though in theory, revenue divided by inventory is not wrong, but in practice, we generally use another way to calculate inventory turnover, which is using cost of goods sold divided by inventory.

Why is that the case? We have covered that there is a close relationship between inventory and cost of goods sold. After producing a certain product, it becomes inventory. Inventory will NOT become cost of goods sold UNLESS the product is sold. As a result, it makes more sense to calculate inventory turnover by using cost of goods sold instead of revenue.

Duration vs. Point of Time

While calculating turnover ratios, we are always using numbers from the income statement, i.e. revenue or cost of goods sold, as the numerator. However, the denominators are always from the balance sheet. We have mentioned that balance sheet is based on specific time point, but income statement is based on duration. If we use division on these two data, which have different time frames, we might encounter some problems.

Actually, the assumption when we are doing such calculations is that the asset is the annual average. We don’t know for sure if this assumption is accurate; a common method to offset inaccuracy is to use the average of the beginning value and the final value of a specific asset during the period. Same thing goes with inventory and cost of goods sold.

However, doing so would cause another problem. We have previously said that by multiplying effectiveness and efficiency, we will get return on investment. This relationship exists at any points in time. However, when we switch to using average values, this equation may not work. 

After judging the pros and cons of both issues, i.e. the duration vs. point of time issue and the above equation issue, we would normally revert to using a simplified method of using the en-of-the-year value of assets while calculating all financial ratios.

Economic implication of turnovers

Turnovers measure the number of times an asset has circulated in a year. For example, how many times will the asset circulate in a given time period? 

As a result, apparently the turnover unit is the number of times the asset has been circulated in a year. 

If an asset is circled twice a year, we would normally say that the turnover of this asset is 2, and it takes half a year for the asset to make a circulation. So turnover ratio helps us calculate the length of an asset’s circulation.

Let’s calculate the assets turnover using the financial statements of our fictional company. 

Accounts receivable turnover

First, let’s look at the accounts receivable turnover. The way to calculate accounts receivable turnover ratio is to take revenue and divide it by accounts receivable. In this case, our revenue is 43 million dollars and our accounts receivable is 13 million dollars, and accounts receivable turnover ratio is 3.3. In other words, the turnover is 3.3 time a year, which is about less than four months in one circulation. To be more specific, if there are 365 days in a year and turnover is 3.3 times, it means one circulation will take 109 days, i.e. our accounts receivable can be collected every 109 days on average.

Inventory turnover

What about inventory turnover? We’ve already covered that inventory turnover is cost of goods sold divided by inventory. For our fictional company, the cost of goods sold is 31 million dollars a year, and the inventory is 5 million. By dividing 31 million with 5 million, we will get 6.2, which means the company’s inventory circles 6.2 times a year. In other words, it takes about 2 month for a specific batch of inventory to finish one circulation. The calculation works like this: by dividing 365 days/year with 6.2, we will get 58 days as the result. This means that on average, the company will need to hold inventory for about 58 days.

For the above example, when does the inventory holding period start and when does it end? How do we actually make sense of the 58 days? 

We know inventories include raw material, product-in-process, and finished goods. Inventory holding period is defined as starting from the purchasing of raw materials to the selling of finished goods, which is a cycle (or circulation). For our fictional company, this cycle takes about 58 days.

When a company makes a sale, part of its inventory (on the balance sheet) will move into cost of goods sold (on the income statement). After making the sale, part of the revenue will be collected as cash, but part of it will become accounts receivable, which later will be collected and become cash. For our fictional company, the inventory holding period is 58 days and the accounts receivable collection period is 109 days, which add up to 167 days in total. What this means is that it will take a little less than half a year to turn cash into materials and back to cash again for the company.

Fixed assets turnover

We can also easily calculate the other assets turnover ratios with this method. For example, the fixed asset turnover is calculated by dividing revenue with fixed assets. For our company, the revenue is 43 million and fixed asset is 57 million, making the fixed assets turnover 0.8. In other words, the circulation of fixed assets will NOT complete in a year. A less than 1 fixed assets turnover is pretty normal, especially for a large manufacturing company. 

Current assets turnover

Similarly, we can calculate the current assets turnover as well. By dividing revenue (43 million) with current assets (40.7 million), we can get our current assets turnover ratio of 1.05, which means that our current assets can finish circulation within a year.

Total assets turnover

Last but not least, we can calculate the total assets turnover. The company’s total assets turnover is revenue divided by total assets; the revenue of the company is 43 million and the total assets is 99.2 million, making the total assets turnover 0.43. 

Return on investment – for who?

Combining all the above turnover ratios, including that of total asset and all other assets, can help paint us a picture of the operation capacity of the company. We said turnover ratio indicates efficiency, which when combined with effectiveness, will determine the return on investment.

Return on investment is one thing that we, as consumers, also encounter every day. For companies, it shows the rate of return on total assets. In other words, it’s the return I can receive after I invest in the total assets. However, if you pay special attention to where all assets are coming from, part of them actually come from resources provided by creditors such as banks. In other words, the resources of total assets are from two parts, one part from creditors, while the other part from stockholders. 

Return on net assets vs. return on total assets

For stockholders, they actually care more about the return on their own investment. Here we come up with another concept: rate of return on net assets, which is calculated as net profit divided by stockholders equity.

The amount stockholders invest in the company is the stockholders’ equity. The return for stockholders’ investment is the company’s net profit. If we take the net profit and divide it by stockholders’ equity, we will get return on investment for the shareholders’ investment in the company.

However, shouldn’t we just call it return on equity instead of return on net assets? 

Well, technically we could, but the conventional practice is to use the latter. The reason is that we can often refer to stockholders’ equity as net assets, since stockholders’ equity equals total assets minus liabilities. That is to say, the net value of the company actually belongs to the stockholders. 

Now let’s calculate the return on investment for total assets and net assets and see what we get.

First of all, let’s look at the return on total assets. Return on total assets is calculated as net profit divided by total assets. The company has a net profit of 5.2 million this year and its total assets are 99.2 million. After dividing the former by the latter, we get the return on total assets at around 5%.

Next, let’s work on its return on net assets. The net profit of the company is 5.2 million and the stockholders’ equity is 36.2 million. After doing the same calculation, we arrive at the company’s return on net assets at about 14%.

@import url(“https://assets.mlcdn.com/fonts.css?version=1714030″); /* LOADER */ .ml-form-embedSubmitLoad { display: inline-block; width: 20px; height: 20px; } .g-recaptcha { transform: scale(1); -webkit-transform: scale(1); transform-origin: 0 0; -webkit-transform-origin: 0 0; height: ; } .sr-only { position: absolute; width: 1px; height: 1px; padding: 0; margin: -1px; overflow: hidden; clip: rect(0,0,0,0); border: 0; } .ml-form-embedSubmitLoad:after { content: ” “; display: block; width: 11px; height: 11px; margin: 1px; border-radius: 50%; border: 4px solid #fff; border-color: #ffffff #ffffff #ffffff transparent; animation: ml-form-embedSubmitLoad 1.2s linear infinite; } @keyframes ml-form-embedSubmitLoad { 0% { transform: rotate(0deg); } 100% { transform: rotate(360deg); } } #mlb2-14362251.ml-form-embedContainer { box-sizing: border-box; display: table; margin: 0 auto; position: static; width: 100% !important; } #mlb2-14362251.ml-form-embedContainer h4, #mlb2-14362251.ml-form-embedContainer p, #mlb2-14362251.ml-form-embedContainer span, #mlb2-14362251.ml-form-embedContainer button { text-transform: none !important; letter-spacing: normal !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper { background-color: #f6f6f6; border-width: 0px; border-color: transparent; border-radius: 4px; border-style: solid; box-sizing: border-box; display: inline-block !important; margin: 0; padding: 0; position: relative; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedPopup, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedDefault { width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedForm { max-width: 100%; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-left { text-align: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-center { text-align: center; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-default { display: table-cell !important; vertical-align: middle !important; text-align: center !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-right { text-align: right; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedHeader img { border-top-left-radius: 4px; border-top-right-radius: 4px; height: auto; margin: 0 auto !important; max-width: 100%; width: 990px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody { padding: 20px 20px 0 20px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody.ml-form-embedBodyHorizontal { padding-bottom: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent { text-align: left; margin: 0 0 20px 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent h4, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent h4 { color: #1F5014; font-family: ‘Anton’, sans-serif; font-size: 30px; font-weight: 400; margin: 0 0 10px 0; text-align: center; word-break: break-word; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p { color: #000000; font-family: ‘Palatino Linotype’, ‘Book Antiqua’, Palatino, serif; font-size: 18px; font-weight: 400; line-height: 24px; margin: 0 0 10px 0; text-align: center; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ul, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ul, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol { color: #000000; font-family: ‘Palatino Linotype’, ‘Book Antiqua’, Palatino, serif; font-size: 18px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol ol { list-style-type: lower-alpha; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol ol ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol ol ol { list-style-type: lower-roman; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p a, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p a { color: #000000; text-decoration: underline; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-block-form .ml-field-group { text-align: left!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-block-form .ml-field-group label { margin-bottom: 5px; color: #333333; font-size: 14px; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; font-weight: bold; font-style: normal; text-decoration: none;; display: inline-block; line-height: 20px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p:last-child, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p:last-child { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody form { margin: 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow { margin: 0 0 20px 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow { float: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent.horozintalForm { margin: 0; padding: 0 0 20px 0; width: 100%; height: auto; float: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow { margin: 0 0 10px 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow.ml-last-item { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow.ml-formfieldHorizintal { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; height: auto; line-height: 21px !important; margin-bottom: 0; margin-top: 0; margin-left: 0; margin-right: 0; padding: 10px 10px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input::-webkit-input-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input::-webkit-input-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input::-moz-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input::-moz-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input:-ms-input-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input:-ms-input-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input:-moz-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input:-moz-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow textarea, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow textarea { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; height: auto; line-height: 21px !important; margin-bottom: 0; margin-top: 0; padding: 10px 10px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { border-color: #cccccc!important; background-color: #ffffff!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input.custom-control-input[type=”checkbox”]{ box-sizing: border-box; padding: 0; position: absolute; z-index: -1; opacity: 0; margin-top: 5px; margin-left: -1.5rem; overflow: visible; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { border-radius: 4px!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=checkbox]:checked~.label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox input[type=checkbox]:checked~.label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox input[type=checkbox]:checked~.label-description::after { background-image: url(“data:image/svg+xml,%3csvg xmlns=’http://www.w3.org/2000/svg’ viewBox=’0 0 8 8’%3e%3cpath fill=’%23fff’ d=’M6.564.75l-3.59 3.612-1.538-1.55L0 4.26 2.974 7.25 8 2.193z’/%3e%3c/svg%3e”); } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::after { background-image: url(“data:image/svg+xml,%3csvg xmlns=’http://www.w3.org/2000/svg’ viewBox=’-4 -4 8 8’%3e%3ccircle r=’3′ fill=’%23fff’/%3e%3c/svg%3e”); } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox input[type=checkbox]:checked~.label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox input[type=checkbox]:checked~.label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=checkbox]:checked~.label-description::before { border-color: #000000!important; background-color: #000000!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::after { top: 2px; box-sizing: border-box; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::after { top: 0px!important; box-sizing: border-box!important; position: absolute; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-control-label::before { position: absolute; top: 4px; left: -1.5rem; display: block; width: 16px; height: 16px; pointer-events: none; content: “”; background-color: #ffffff; border: #adb5bd solid 1px; border-radius: 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-control-label::after { position: absolute; top: 2px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { position: absolute; top: 4px; left: -1.5rem; display: block; width: 16px; height: 16px; pointer-events: none; content: “”; background-color: #ffffff; border: #adb5bd solid 1px; border-radius: 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after { position: absolute; top: 0px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { position: absolute; top: 0px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-radio .custom-control-label::after { background: no-repeat 50%/50% 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-checkbox .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { background: no-repeat 50%/50% 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-control, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-control { position: relative; display: block; min-height: 1.5rem; padding-left: 1.5rem; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input { position: absolute; z-index: -1; opacity: 0; box-sizing: border-box; padding: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label { color: #000000; font-size: 12px!important; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; line-height: 22px; margin-bottom: 0; position: relative; vertical-align: top; font-style: normal; font-weight: 700; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-select, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-select { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; line-height: 20px !important; margin-bottom: 0; margin-top: 0; padding: 10px 28px 10px 12px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; height: auto; display: inline-block; vertical-align: middle; background: url(‘https://assets.mlcdn.com/ml/images/default/dropdown.svg’) no-repeat right .75rem center/8px 10px; -webkit-appearance: none; -moz-appearance: none; appearance: none; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow { height: auto; width: 100%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal { width: 70%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-button-horizontal { width: 30%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-button-horizontal.labelsOn { padding-top: 25px; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .horizontal-fields { box-sizing: border-box; float: left; padding-right: 10px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input { background-color: #ffffff; color: #333333; border-color: #cccccc; border-radius: 4px; border-style: solid; border-width: 1px; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px; line-height: 20px; margin-bottom: 0; margin-top: 0; padding: 10px 10px; width: 100%; box-sizing: border-box; overflow-y: initial; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow button { background-color: #000000 !important; border-color: #000000; border-style: solid; border-width: 1px; border-radius: 4px; box-shadow: none; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; font-weight: 700; line-height: 20px; margin: 0 !important; padding: 10px !important; width: 100%; height: auto; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow button:hover { background-color: #1F5014 !important; border-color: #1F5014 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=”checkbox”] { box-sizing: border-box; padding: 0; position: absolute; z-index: -1; opacity: 0; margin-top: 5px; margin-left: -1.5rem; overflow: visible; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description { color: #000000; display: block; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; font-size: 12px; text-align: left; margin-bottom: 0; position: relative; vertical-align: top; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label { font-weight: normal; margin: 0; padding: 0; position: relative; display: block; min-height: 24px; padding-left: 24px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label a { color: #000000; text-decoration: underline; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label p { color: #000000 !important; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif !important; font-size: 12px !important; font-weight: normal !important; line-height: 18px !important; padding: 0 !important; margin: 0 5px 0 0 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label p:last-child { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit { margin: 0 0 20px 0; float: left; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button { background-color: #000000 !important; border: none !important; border-radius: 4px !important; box-shadow: none !important; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif !important; font-size: 14px !important; font-weight: 700 !important; line-height: 21px !important; height: auto; padding: 10px !important; width: 100% !important; box-sizing: border-box !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button.loading { display: none; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button:hover { background-color: #1F5014 !important; } .ml-subscribe-close { width: 30px; height: 30px; background: url(‘https://assets.mlcdn.com/ml/images/default/modal_close.png’) no-repeat; background-size: 30px; cursor: pointer; margin-top: -10px; margin-right: -10px; position: absolute; top: 0; right: 0; } .ml-error input, .ml-error textarea, .ml-error select { border-color: red!important; } .ml-error .custom-checkbox-radio-list { border: 1px solid red !important; border-radius: 4px; padding: 10px; } .ml-error .label-description, .ml-error .label-description p, .ml-error .label-description p a, .ml-error label:first-child { color: #ff0000 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow.ml-error .label-description p, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow.ml-error .label-description p:first-letter { color: #ff0000 !important; } @media only screen and (max-width: 400px){ .ml-form-embedWrapper.embedDefault, .ml-form-embedWrapper.embedPopup { width: 100%!important; } .ml-form-formContent.horozintalForm { float: left!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow { height: auto!important; width: 100%!important; float: left!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal { width: 100%!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal > div { padding-right: 0px!important; padding-bottom: 10px; } .ml-form-formContent.horozintalForm .ml-button-horizontal { width: 100%!important; } .ml-form-formContent.horozintalForm .ml-button-horizontal.labelsOn { padding-top: 0px!important; } } .ml-mobileButton-horizontal { display: none; } #mlb2-14362251 .ml-mobileButton-horizontal button { background-color: #000000 !important; border-color: #000000 !important; border-style: solid !important; border-width: 1px !important; border-radius: 4px !important; box-shadow: none !important; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif !important; font-size: 14px !important; font-weight: 700 !important; line-height: 20px !important; padding: 10px !important; width: 100% !important; } @media only screen and (max-width: 400px) { #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent.horozintalForm { padding: 0 0 10px 0 !important; } .ml-hide-horizontal { display: none !important; } .ml-form-formContent.horozintalForm .ml-button-horizontal { display: none!important; } .ml-mobileButton-horizontal { display: inline-block !important; margin-bottom: 20px;width:100%; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal > div { padding-bottom: 0px !important; } } @media only screen and (max-width: 400px) { .ml-form-formContent.horozintalForm .ml-form-horizontalRow .horizontal-fields { margin-bottom: 10px !important; width: 100% !important; } }

function ml_webform_success_14362251() { var $ = ml_jQuery || jQuery; $(‘.ml-subscribe-form-14362251 .row-success’).show(); $(‘.ml-subscribe-form-14362251 .row-form’).hide(); } fetch(“https://assets.mailerlite.com/jsonp/918262/forms/119753320103413631/takel”)

In the previous episode of learning, we learnt some basic methods of financial analysis, primarily common size analysis. We also talked about some other methods such as ratio analysis and cash flow analysis. In this episode, we will dive deep into ratio analysis and some commonly used ratios.

When we feel that the data on the statement are not intuitive enough to tell us the performance of the company, we then want to do some calculations to get more information. Let’s start from what the company cares the most. 

When we examine the business of a company, what we care the most is usually the profitability of the company. The reason is that the purpose of running business is to gain profits. If we want to know such information, which statement should we look at?

Apparently, it is the income statement. From this statement, we can see how much the gross profit and net profit are. 

Take our fictional company as an example. From its income statement, we can tell easily how much the gross profit is by using 43 million (revenue) minus 31 million (cost of goods), which is 12 million dollars. We also get the net profit directly from the income statement – 5.2 million dollars. 

Is net profit enough to judge profitability?

After seeing these figures, can we make a judgment of the profitability of the company? 

Not so fast. 

Without knowing more information on the industry or the nature of the business, it’s premature to say whether this 5.2 million of net profit is big or small. In other words, we lack some crucial context. Let me tell you why.

If the profit of Walmart is 5 million this year, you will easily say that this number is horribly small. But if it is the profit of a small cafe, you will also easily say that this number is unbelievably big. So even for the same number of 5 million dollars, we will judge very differently based on the objects we are judging.

What does it mean? 

It means the figure of profit itself is not sufficient enough to understand the profitability of a company. 

And here comes the ratios, i.e. percentages.

Is net profit ratio enough to judge profitability?

We humans are notoriously bad at judging extremely large numbers. After a certain level, these numbers don’t make much sense to us anymore. But we can almost always make sense of percentages and pass on judgments on top of that.

For instance, if we switch to gross profit ratio or net profit ratio by either dividing gross profit by revenue, or by dividing net profit by revenue, we can compare either ratio of Walmart and that of the small cafe. 

If you recall from the common size analysis of our fictional company, we sort of have already got the two ratios, without consciously doing so. After deducting cost of goods sold from the revenue, we got our gross profit of the company, which is 12 million dollars. Once we divide the gross profit – 12 million – by the revenue – 43 million, the gross profit ratio of 28%. 

With the same method, we can get our net profit ratio by dividing 5.2 million by 43 million, making the final net profit ratio at 12%. As we have this 12%, we can compare companies of different sizes using the same ratios.

Let’s look at the net profit ratio. When we have a net profit ratio of 12%, it means that for every 100 dollars of products sold, I can pocket 12 dollars worth of profit. But if I only tell you this ratio without giving you other information, You may still find such information insufficient.

The core unanswered question will be “how many did I sell?”

Scale MATTERS!

If I only sell 100 dollars of products in total, the 12 dollars profit is … just unsatisfying.

But if I sell 10 billion dollars of products in total, the 1.2 billion dollars profit will be exhilarating. 

Although the net profit ratio is the same for both companies, they are completely different businesses. Therefore, although we can compare Walmart and the cafe via net profit ratio, it is not hard to understand that they have different economic impacts on us. Scale matters!

Then how can I get scale?

Well, the simple answer is increasing your revenue. Even though this is very, very hard to accomplish, but let’s just simplify the scenario: all else equal, the more money you invest, the higher the chances you get in increasing your revenue. This should be given.

Therefore, how much revenue a company generates should be put together with how much investment it puts into the company. 

If I write down both the net profit ratio and the ratio above, you may find something interesting: 

After we multiply the two ratios, the two revenue figures are crossed out, and we have a new ratio which is net profit over total asset.

What does it mean? 

The total asset is the amount of asset invested in this company. Net profit is the return we have. In other words, it means how much money I earn after investing such amount of resources. This is a fairly common concept that people encounter every day, called returned on investment. For our financial statements, we call it return on asset (ROA).

We once compared the income statement to a funnel, where revenue enters from the top and profit comes out from the bottom. The net profit ratio tells us how steep this funnel is: the steeper the funnel, the fewer the expense, and more revenue will become profit. Net profit ratio is a concept that measure the effectiveness of the company.

What is revenue divided by total asset then? 

If you recall, the business operations of a company is sort of like a cycle, where cash turns into inventory and/or other assets, which turn back into cash again. The company repeats the cycle again and again each year, hopefully increasing its cash position every time. All else equal, i.e. the amount of money the company makes in each cycle, the more cycles the company goes through each year, the more money it makes as a whole.

Revenue divided by total asset is called total asset turnover – a concept that measures the efficiency of the company. 

Now we can see the return of investment of a company is determined by two factors. The first factor – net profit ratio – measures how large the return is, and the second factor – total asset turnover – measures how fast the company turns cash over. 

This is also the first time that we distill management knowledge from our financial statements. By looking at the above two factors – net profit ratio and total asset turnover – you should get a better feeling at what to focus on while managing a business.

@import url(“https://assets.mlcdn.com/fonts.css?version=1714030″); /* LOADER */ .ml-form-embedSubmitLoad { display: inline-block; width: 20px; height: 20px; } .g-recaptcha { transform: scale(1); -webkit-transform: scale(1); transform-origin: 0 0; -webkit-transform-origin: 0 0; height: ; } .sr-only { position: absolute; width: 1px; height: 1px; padding: 0; margin: -1px; overflow: hidden; clip: rect(0,0,0,0); border: 0; } .ml-form-embedSubmitLoad:after { content: ” “; display: block; width: 11px; height: 11px; margin: 1px; border-radius: 50%; border: 4px solid #fff; border-color: #ffffff #ffffff #ffffff transparent; animation: ml-form-embedSubmitLoad 1.2s linear infinite; } @keyframes ml-form-embedSubmitLoad { 0% { transform: rotate(0deg); } 100% { transform: rotate(360deg); } } #mlb2-14362251.ml-form-embedContainer { box-sizing: border-box; display: table; margin: 0 auto; position: static; width: 100% !important; } #mlb2-14362251.ml-form-embedContainer h4, #mlb2-14362251.ml-form-embedContainer p, #mlb2-14362251.ml-form-embedContainer span, #mlb2-14362251.ml-form-embedContainer button { text-transform: none !important; letter-spacing: normal !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper { background-color: #f6f6f6; border-width: 0px; border-color: transparent; border-radius: 4px; border-style: solid; box-sizing: border-box; display: inline-block !important; margin: 0; padding: 0; position: relative; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedPopup, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedDefault { width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedForm { max-width: 100%; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-left { text-align: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-center { text-align: center; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-default { display: table-cell !important; vertical-align: middle !important; text-align: center !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-right { text-align: right; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedHeader img { border-top-left-radius: 4px; border-top-right-radius: 4px; height: auto; margin: 0 auto !important; max-width: 100%; width: 990px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody { padding: 20px 20px 0 20px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody.ml-form-embedBodyHorizontal { padding-bottom: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent { text-align: left; margin: 0 0 20px 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent h4, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent h4 { color: #1F5014; font-family: ‘Anton’, sans-serif; font-size: 30px; font-weight: 400; margin: 0 0 10px 0; text-align: center; word-break: break-word; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p { color: #000000; font-family: ‘Palatino Linotype’, ‘Book Antiqua’, Palatino, serif; font-size: 18px; font-weight: 400; line-height: 24px; margin: 0 0 10px 0; text-align: center; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ul, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ul, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol { color: #000000; font-family: ‘Palatino Linotype’, ‘Book Antiqua’, Palatino, serif; font-size: 18px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol ol { list-style-type: lower-alpha; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol ol ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol ol ol { list-style-type: lower-roman; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p a, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p a { color: #000000; text-decoration: underline; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-block-form .ml-field-group { text-align: left!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-block-form .ml-field-group label { margin-bottom: 5px; color: #333333; font-size: 14px; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; font-weight: bold; font-style: normal; text-decoration: none;; display: inline-block; line-height: 20px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p:last-child, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p:last-child { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody form { margin: 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow { margin: 0 0 20px 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow { float: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent.horozintalForm { margin: 0; padding: 0 0 20px 0; width: 100%; height: auto; float: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow { margin: 0 0 10px 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow.ml-last-item { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow.ml-formfieldHorizintal { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; height: auto; line-height: 21px !important; margin-bottom: 0; margin-top: 0; margin-left: 0; margin-right: 0; padding: 10px 10px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input::-webkit-input-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input::-webkit-input-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input::-moz-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input::-moz-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input:-ms-input-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input:-ms-input-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input:-moz-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input:-moz-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow textarea, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow textarea { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; height: auto; line-height: 21px !important; margin-bottom: 0; margin-top: 0; padding: 10px 10px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { border-color: #cccccc!important; background-color: #ffffff!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input.custom-control-input[type=”checkbox”]{ box-sizing: border-box; padding: 0; position: absolute; z-index: -1; opacity: 0; margin-top: 5px; margin-left: -1.5rem; overflow: visible; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { border-radius: 4px!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=checkbox]:checked~.label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox input[type=checkbox]:checked~.label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox input[type=checkbox]:checked~.label-description::after { background-image: url(“data:image/svg+xml,%3csvg xmlns=’http://www.w3.org/2000/svg’ viewBox=’0 0 8 8’%3e%3cpath fill=’%23fff’ d=’M6.564.75l-3.59 3.612-1.538-1.55L0 4.26 2.974 7.25 8 2.193z’/%3e%3c/svg%3e”); } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::after { background-image: url(“data:image/svg+xml,%3csvg xmlns=’http://www.w3.org/2000/svg’ viewBox=’-4 -4 8 8’%3e%3ccircle r=’3′ fill=’%23fff’/%3e%3c/svg%3e”); } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox input[type=checkbox]:checked~.label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox input[type=checkbox]:checked~.label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=checkbox]:checked~.label-description::before { border-color: #000000!important; background-color: #000000!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::after { top: 2px; box-sizing: border-box; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::after { top: 0px!important; box-sizing: border-box!important; position: absolute; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-control-label::before { position: absolute; top: 4px; left: -1.5rem; display: block; width: 16px; height: 16px; pointer-events: none; content: “”; background-color: #ffffff; border: #adb5bd solid 1px; border-radius: 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-control-label::after { position: absolute; top: 2px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { position: absolute; top: 4px; left: -1.5rem; display: block; width: 16px; height: 16px; pointer-events: none; content: “”; background-color: #ffffff; border: #adb5bd solid 1px; border-radius: 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after { position: absolute; top: 0px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { position: absolute; top: 0px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-radio .custom-control-label::after { background: no-repeat 50%/50% 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-checkbox .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { background: no-repeat 50%/50% 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-control, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-control { position: relative; display: block; min-height: 1.5rem; padding-left: 1.5rem; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input { position: absolute; z-index: -1; opacity: 0; box-sizing: border-box; padding: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label { color: #000000; font-size: 12px!important; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; line-height: 22px; margin-bottom: 0; position: relative; vertical-align: top; font-style: normal; font-weight: 700; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-select, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-select { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; line-height: 20px !important; margin-bottom: 0; margin-top: 0; padding: 10px 28px 10px 12px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; height: auto; display: inline-block; vertical-align: middle; background: url(‘https://assets.mlcdn.com/ml/images/default/dropdown.svg’) no-repeat right .75rem center/8px 10px; -webkit-appearance: none; -moz-appearance: none; appearance: none; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow { height: auto; width: 100%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal { width: 70%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-button-horizontal { width: 30%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-button-horizontal.labelsOn { padding-top: 25px; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .horizontal-fields { box-sizing: border-box; float: left; padding-right: 10px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input { background-color: #ffffff; color: #333333; border-color: #cccccc; border-radius: 4px; border-style: solid; border-width: 1px; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px; line-height: 20px; margin-bottom: 0; margin-top: 0; padding: 10px 10px; width: 100%; box-sizing: border-box; overflow-y: initial; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow button { background-color: #000000 !important; border-color: #000000; border-style: solid; border-width: 1px; border-radius: 4px; box-shadow: none; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; font-weight: 700; line-height: 20px; margin: 0 !important; padding: 10px !important; width: 100%; height: auto; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow button:hover { background-color: #1F5014 !important; border-color: #1F5014 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=”checkbox”] { box-sizing: border-box; padding: 0; position: absolute; z-index: -1; opacity: 0; margin-top: 5px; margin-left: -1.5rem; overflow: visible; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description { color: #000000; display: block; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; font-size: 12px; text-align: left; margin-bottom: 0; position: relative; vertical-align: top; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label { font-weight: normal; margin: 0; padding: 0; position: relative; display: block; min-height: 24px; padding-left: 24px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label a { color: #000000; text-decoration: underline; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label p { color: #000000 !important; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif !important; font-size: 12px !important; font-weight: normal !important; line-height: 18px !important; padding: 0 !important; margin: 0 5px 0 0 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label p:last-child { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit { margin: 0 0 20px 0; float: left; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button { background-color: #000000 !important; border: none !important; border-radius: 4px !important; box-shadow: none !important; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif !important; font-size: 14px !important; font-weight: 700 !important; line-height: 21px !important; height: auto; padding: 10px !important; width: 100% !important; box-sizing: border-box !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button.loading { display: none; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button:hover { background-color: #1F5014 !important; } .ml-subscribe-close { width: 30px; height: 30px; background: url(‘https://assets.mlcdn.com/ml/images/default/modal_close.png’) no-repeat; background-size: 30px; cursor: pointer; margin-top: -10px; margin-right: -10px; position: absolute; top: 0; right: 0; } .ml-error input, .ml-error textarea, .ml-error select { border-color: red!important; } .ml-error .custom-checkbox-radio-list { border: 1px solid red !important; border-radius: 4px; padding: 10px; } .ml-error .label-description, .ml-error .label-description p, .ml-error .label-description p a, .ml-error label:first-child { color: #ff0000 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow.ml-error .label-description p, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow.ml-error .label-description p:first-letter { color: #ff0000 !important; } @media only screen and (max-width: 400px){ .ml-form-embedWrapper.embedDefault, .ml-form-embedWrapper.embedPopup { width: 100%!important; } .ml-form-formContent.horozintalForm { float: left!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow { height: auto!important; width: 100%!important; float: left!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal { width: 100%!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal > div { padding-right: 0px!important; padding-bottom: 10px; } .ml-form-formContent.horozintalForm .ml-button-horizontal { width: 100%!important; } .ml-form-formContent.horozintalForm .ml-button-horizontal.labelsOn { padding-top: 0px!important; } } .ml-mobileButton-horizontal { display: none; } #mlb2-14362251 .ml-mobileButton-horizontal button { background-color: #000000 !important; border-color: #000000 !important; border-style: solid !important; border-width: 1px !important; border-radius: 4px !important; box-shadow: none !important; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif !important; font-size: 14px !important; font-weight: 700 !important; line-height: 20px !important; padding: 10px !important; width: 100% !important; } @media only screen and (max-width: 400px) { #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent.horozintalForm { padding: 0 0 10px 0 !important; } .ml-hide-horizontal { display: none !important; } .ml-form-formContent.horozintalForm .ml-button-horizontal { display: none!important; } .ml-mobileButton-horizontal { display: inline-block !important; margin-bottom: 20px;width:100%; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal > div { padding-bottom: 0px !important; } } @media only screen and (max-width: 400px) { .ml-form-formContent.horozintalForm .ml-form-horizontalRow .horizontal-fields { margin-bottom: 10px !important; width: 100% !important; } }

function ml_webform_success_14362251() { var $ = ml_jQuery || jQuery; $(‘.ml-subscribe-form-14362251 .row-success’).show(); $(‘.ml-subscribe-form-14362251 .row-form’).hide(); } fetch(“https://assets.mailerlite.com/jsonp/918262/forms/119753320103413631/takel”)

Now that we have a deeper understanding of the three financial statements and understood how each statement has a different function, we can now move on to see how to use these statements.

Let’s start from some basic methods of financial analyses.

Common Size Analysis

Common Size Analysis is a fancy name for calculating the percentage of each item on the financial statement. It is sometimes referred to as Structure Analysis.

Common Size Analysis of Income Statement

For instance, in an income statement the structure means the ratio of each item over revenue. 

We often compare income statement to a funnel, where revenue enters from the top and net profit comes out of the bottom. If we want to know what percentage of the revenue that each following item occupies in this process, we can use the common size analysis to help accomplish that.

This is the income statement we made for our fictional company. Now let’s divide all the items on this statement by the revenue and see what the percentages are.

From the common size analysis, we can see that the cost of goods is 31 million dollars and its ratio over total revenue is 72%. The percentages of three major expenses, namely operating expense, administrative expense, and financial expense, are 6%, 5%, and 3% respectively. The percentage of operating profit over the income is 14%. Deducting income tax ratio of 2% further will make our net profit about 12% of the total revenue.

With the common size analysis, we can have a more intuitive view of the structure of the statement, as we as human beings are more inclined to understanding percentages rather than absolute numbers.

Next, let’s see how to do common size analysis of balance sheets. 

Common Size Analysis of Balance Sheet

Now let’s use the balance sheet of our fictional company to conduct a common size analysis.

What we can find is that cash accounts for 21% of the total asset of the company, inventory 5%, account receivable 13%, and prepaid expenses 2%. As a result, the total current asset accounts for 41% of the total asset. After that, fixed asset accounts for 57% of the total asset, and intangible asset around 2%. 

The industry that a company operates in and the overall industry competitiveness affect how a company allocates resources into different asset items. For our company, fixed assets occupies the largest share of the total asset, close to 60%. It seems that this is a manufacturing company with relatively heavy assets. On top of that, the company has 13% of its total assets tied up in accounts receivable, further illustrating the competitiveness of the industry.

Now let’s turn to the right side of the balance sheet.

Here we can see that liabilities account for 63% of the total asset, while the rest 38% are shareholders’ equity. Among the liabilities, short-term debts account for 51%, and account payables account for 12% of the total asset. 

In terms of shareholders’ equity, the initial capital provided by the shareholders when the company was set up contributed 32% of the total asset, and retained earnings account for about 4%. It is clear that at this point, the company relies MORE on the bank than its shareholders to provide capital.

Other Types of Analyses

Apart from the common size analysis, there are other methods such as ratio analysis and cash flow analysis, etc. Ratio analysis is when we think the original data of the statement are not sufficient to describe the economic activities of the company, and we might need to create new ratios by busing the original data. Ratio analysis is one of the most important financial analysis methods.

Regardless of whatever method we use, the analyses can only help us obtain data, and it is still up to us to interpret them. As what we did for common size analysis, sometimes we not only need to look at the data themselves, but also need to compare these data with something else in order to make sense. For example, if we compare our company’s past data with its current data, we are essentially conducting time series analysis. If we compare our data with our competitor’s data or the industry average, we are conducting comparative analysis. We will cover more in future episodes.

@import url(“https://assets.mlcdn.com/fonts.css?version=1714030″); /* LOADER */ .ml-form-embedSubmitLoad { display: inline-block; width: 20px; height: 20px; } .g-recaptcha { transform: scale(1); -webkit-transform: scale(1); transform-origin: 0 0; -webkit-transform-origin: 0 0; height: ; } .sr-only { position: absolute; width: 1px; height: 1px; padding: 0; margin: -1px; overflow: hidden; clip: rect(0,0,0,0); border: 0; } .ml-form-embedSubmitLoad:after { content: ” “; display: block; width: 11px; height: 11px; margin: 1px; border-radius: 50%; border: 4px solid #fff; border-color: #ffffff #ffffff #ffffff transparent; animation: ml-form-embedSubmitLoad 1.2s linear infinite; } @keyframes ml-form-embedSubmitLoad { 0% { transform: rotate(0deg); } 100% { transform: rotate(360deg); } } #mlb2-14362251.ml-form-embedContainer { box-sizing: border-box; display: table; margin: 0 auto; position: static; width: 100% !important; } #mlb2-14362251.ml-form-embedContainer h4, #mlb2-14362251.ml-form-embedContainer p, #mlb2-14362251.ml-form-embedContainer span, #mlb2-14362251.ml-form-embedContainer button { text-transform: none !important; letter-spacing: normal !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper { background-color: #f6f6f6; border-width: 0px; border-color: transparent; border-radius: 4px; border-style: solid; box-sizing: border-box; display: inline-block !important; margin: 0; padding: 0; position: relative; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedPopup, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedDefault { width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedForm { max-width: 100%; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-left { text-align: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-center { text-align: center; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-default { display: table-cell !important; vertical-align: middle !important; text-align: center !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-right { text-align: right; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedHeader img { border-top-left-radius: 4px; border-top-right-radius: 4px; height: auto; margin: 0 auto !important; max-width: 100%; width: 990px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody { padding: 20px 20px 0 20px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody.ml-form-embedBodyHorizontal { padding-bottom: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent { text-align: left; margin: 0 0 20px 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent h4, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent h4 { color: #1F5014; font-family: ‘Anton’, sans-serif; font-size: 30px; font-weight: 400; margin: 0 0 10px 0; text-align: center; word-break: break-word; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p { color: #000000; font-family: ‘Palatino Linotype’, ‘Book Antiqua’, Palatino, serif; font-size: 18px; font-weight: 400; line-height: 24px; margin: 0 0 10px 0; text-align: center; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ul, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ul, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol { color: #000000; font-family: ‘Palatino Linotype’, ‘Book Antiqua’, Palatino, serif; font-size: 18px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol ol { list-style-type: lower-alpha; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol ol ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol ol ol { list-style-type: lower-roman; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p a, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p a { color: #000000; text-decoration: underline; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-block-form .ml-field-group { text-align: left!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-block-form .ml-field-group label { margin-bottom: 5px; color: #333333; font-size: 14px; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; font-weight: bold; font-style: normal; text-decoration: none;; display: inline-block; line-height: 20px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p:last-child, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p:last-child { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody form { margin: 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow { margin: 0 0 20px 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow { float: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent.horozintalForm { margin: 0; padding: 0 0 20px 0; width: 100%; height: auto; float: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow { margin: 0 0 10px 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow.ml-last-item { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow.ml-formfieldHorizintal { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; height: auto; line-height: 21px !important; margin-bottom: 0; margin-top: 0; margin-left: 0; margin-right: 0; padding: 10px 10px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input::-webkit-input-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input::-webkit-input-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input::-moz-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input::-moz-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input:-ms-input-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input:-ms-input-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input:-moz-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input:-moz-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow textarea, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow textarea { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; height: auto; line-height: 21px !important; margin-bottom: 0; margin-top: 0; padding: 10px 10px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { border-color: #cccccc!important; background-color: #ffffff!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input.custom-control-input[type=”checkbox”]{ box-sizing: border-box; padding: 0; position: absolute; z-index: -1; opacity: 0; margin-top: 5px; margin-left: -1.5rem; overflow: visible; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { border-radius: 4px!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=checkbox]:checked~.label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox input[type=checkbox]:checked~.label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox input[type=checkbox]:checked~.label-description::after { background-image: url(“data:image/svg+xml,%3csvg xmlns=’http://www.w3.org/2000/svg’ viewBox=’0 0 8 8’%3e%3cpath fill=’%23fff’ d=’M6.564.75l-3.59 3.612-1.538-1.55L0 4.26 2.974 7.25 8 2.193z’/%3e%3c/svg%3e”); } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::after { background-image: url(“data:image/svg+xml,%3csvg xmlns=’http://www.w3.org/2000/svg’ viewBox=’-4 -4 8 8’%3e%3ccircle r=’3′ fill=’%23fff’/%3e%3c/svg%3e”); } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox input[type=checkbox]:checked~.label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox input[type=checkbox]:checked~.label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=checkbox]:checked~.label-description::before { border-color: #000000!important; background-color: #000000!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::after { top: 2px; box-sizing: border-box; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::after { top: 0px!important; box-sizing: border-box!important; position: absolute; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-control-label::before { position: absolute; top: 4px; left: -1.5rem; display: block; width: 16px; height: 16px; pointer-events: none; content: “”; background-color: #ffffff; border: #adb5bd solid 1px; border-radius: 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-control-label::after { position: absolute; top: 2px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { position: absolute; top: 4px; left: -1.5rem; display: block; width: 16px; height: 16px; pointer-events: none; content: “”; background-color: #ffffff; border: #adb5bd solid 1px; border-radius: 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after { position: absolute; top: 0px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { position: absolute; top: 0px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-radio .custom-control-label::after { background: no-repeat 50%/50% 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-checkbox .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { background: no-repeat 50%/50% 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-control, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-control { position: relative; display: block; min-height: 1.5rem; padding-left: 1.5rem; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input { position: absolute; z-index: -1; opacity: 0; box-sizing: border-box; padding: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label { color: #000000; font-size: 12px!important; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; line-height: 22px; margin-bottom: 0; position: relative; vertical-align: top; font-style: normal; font-weight: 700; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-select, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-select { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; line-height: 20px !important; margin-bottom: 0; margin-top: 0; padding: 10px 28px 10px 12px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; height: auto; display: inline-block; vertical-align: middle; background: url(‘https://assets.mlcdn.com/ml/images/default/dropdown.svg’) no-repeat right .75rem center/8px 10px; -webkit-appearance: none; -moz-appearance: none; appearance: none; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow { height: auto; width: 100%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal { width: 70%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-button-horizontal { width: 30%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-button-horizontal.labelsOn { padding-top: 25px; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .horizontal-fields { box-sizing: border-box; float: left; padding-right: 10px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input { background-color: #ffffff; color: #333333; border-color: #cccccc; border-radius: 4px; border-style: solid; border-width: 1px; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px; line-height: 20px; margin-bottom: 0; margin-top: 0; padding: 10px 10px; width: 100%; box-sizing: border-box; overflow-y: initial; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow button { background-color: #000000 !important; border-color: #000000; border-style: solid; border-width: 1px; border-radius: 4px; box-shadow: none; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; font-weight: 700; line-height: 20px; margin: 0 !important; padding: 10px !important; width: 100%; height: auto; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow button:hover { background-color: #1F5014 !important; border-color: #1F5014 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=”checkbox”] { box-sizing: border-box; padding: 0; position: absolute; z-index: -1; opacity: 0; margin-top: 5px; margin-left: -1.5rem; overflow: visible; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description { color: #000000; display: block; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; font-size: 12px; text-align: left; margin-bottom: 0; position: relative; vertical-align: top; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label { font-weight: normal; margin: 0; padding: 0; position: relative; display: block; min-height: 24px; padding-left: 24px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label a { color: #000000; text-decoration: underline; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label p { color: #000000 !important; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif !important; font-size: 12px !important; font-weight: normal !important; line-height: 18px !important; padding: 0 !important; margin: 0 5px 0 0 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label p:last-child { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit { margin: 0 0 20px 0; float: left; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button { background-color: #000000 !important; border: none !important; border-radius: 4px !important; box-shadow: none !important; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif !important; font-size: 14px !important; font-weight: 700 !important; line-height: 21px !important; height: auto; padding: 10px !important; width: 100% !important; box-sizing: border-box !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button.loading { display: none; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button:hover { background-color: #1F5014 !important; } .ml-subscribe-close { width: 30px; height: 30px; background: url(‘https://assets.mlcdn.com/ml/images/default/modal_close.png’) no-repeat; background-size: 30px; cursor: pointer; margin-top: -10px; margin-right: -10px; position: absolute; top: 0; right: 0; } .ml-error input, .ml-error textarea, .ml-error select { border-color: red!important; } .ml-error .custom-checkbox-radio-list { border: 1px solid red !important; border-radius: 4px; padding: 10px; } .ml-error .label-description, .ml-error .label-description p, .ml-error .label-description p a, .ml-error label:first-child { color: #ff0000 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow.ml-error .label-description p, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow.ml-error .label-description p:first-letter { color: #ff0000 !important; } @media only screen and (max-width: 400px){ .ml-form-embedWrapper.embedDefault, .ml-form-embedWrapper.embedPopup { width: 100%!important; } .ml-form-formContent.horozintalForm { float: left!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow { height: auto!important; width: 100%!important; float: left!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal { width: 100%!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal > div { padding-right: 0px!important; padding-bottom: 10px; } .ml-form-formContent.horozintalForm .ml-button-horizontal { width: 100%!important; } .ml-form-formContent.horozintalForm .ml-button-horizontal.labelsOn { padding-top: 0px!important; } } .ml-mobileButton-horizontal { display: none; } #mlb2-14362251 .ml-mobileButton-horizontal button { background-color: #000000 !important; border-color: #000000 !important; border-style: solid !important; border-width: 1px !important; border-radius: 4px !important; box-shadow: none !important; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif !important; font-size: 14px !important; font-weight: 700 !important; line-height: 20px !important; padding: 10px !important; width: 100% !important; } @media only screen and (max-width: 400px) { #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent.horozintalForm { padding: 0 0 10px 0 !important; } .ml-hide-horizontal { display: none !important; } .ml-form-formContent.horozintalForm .ml-button-horizontal { display: none!important; } .ml-mobileButton-horizontal { display: inline-block !important; margin-bottom: 20px;width:100%; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal > div { padding-bottom: 0px !important; } } @media only screen and (max-width: 400px) { .ml-form-formContent.horozintalForm .ml-form-horizontalRow .horizontal-fields { margin-bottom: 10px !important; width: 100% !important; } }

function ml_webform_success_14362251() { var $ = ml_jQuery || jQuery; $(‘.ml-subscribe-form-14362251 .row-success’).show(); $(‘.ml-subscribe-form-14362251 .row-form’).hide(); } fetch(“https://assets.mailerlite.com/jsonp/918262/forms/119753320103413631/takel”)

My First Million is one of the three podcasts that I listen to on a daily basis. It is probably my favorite; I just love listening to Shaan and Sam shoot the shit on my way to work every day. It’s one of those things that are either loved or hated, and rarely anything in between.

I haven’t written anything specifically related to MFM yet, but this latest episode called 3 things you need to outperform 99% of entrepreneurs has something directly tied to what I’ve been learning recently, and that is Financial Statements. About 30 minutes into the episode, Sam and Shaan started discussing Growth vs. EBITDA vs. Cash Flow as a founder’s primary focus in operating a company, and how that focus can change the direction of an organization.

My learnings

1. For an entrepreneur, the first order of things is revenue. Growing revenue is probably the hardest thing, as you are convincing clients to vote for you with their money.
2. But before that, you will need product market fit. Having product market fit will give you the opportunity to grow your revenue. With it, you will feel like the market is pulling you; without it, you will always be chasing clients, and nothing else matters.
3. Compared to growing revenue, growing EBITDA (or profit in that regard) is relatively easier, but it requires a certain (different) set of skills.
4. A newsletter is an asset-light business; an e-commerce is an asset-heavy business. E-commerce has one unique difference from newsletter, and that is inventory. Having inventory could mean that much of your asset is tied up in inventory, and the business must pay attention to the turnover rate and cash flow. (Shaan went on to say that he thinks e-commerce is a terrible business, even though he is winning in it.)
5. Compared to e-commerce, I’d think newsletter is a “better” business since its clients front money to the business before services are delivered. Most SaaS are like this, as clients pay annual subscriptions upfront before the services are delivered monthly. This is a great position to be in.

So as an entrepreneur, you should first focus on income statement and cash flow statement. The former tells you where you are spending money on the operations side, and how much money you are making, while the latter helps you look out for how you are spending and receiving cash, a crucial risk indicator. If you want to know what to focus on as a creditor, an investor, or an M&A department in a large company, read this article.

The Discussion in the Podcast

---

@import url(“https://assets.mlcdn.com/fonts.css?version=1714030″); /* LOADER */ .ml-form-embedSubmitLoad { display: inline-block; width: 20px; height: 20px; } .g-recaptcha { transform: scale(1); -webkit-transform: scale(1); transform-origin: 0 0; -webkit-transform-origin: 0 0; height: ; } .sr-only { position: absolute; width: 1px; height: 1px; padding: 0; margin: -1px; overflow: hidden; clip: rect(0,0,0,0); border: 0; } .ml-form-embedSubmitLoad:after { content: ” “; display: block; width: 11px; height: 11px; margin: 1px; border-radius: 50%; border: 4px solid #fff; border-color: #ffffff #ffffff #ffffff transparent; animation: ml-form-embedSubmitLoad 1.2s linear infinite; } @keyframes ml-form-embedSubmitLoad { 0% { transform: rotate(0deg); } 100% { transform: rotate(360deg); } } #mlb2-14362251.ml-form-embedContainer { box-sizing: border-box; display: table; margin: 0 auto; position: static; width: 100% !important; } #mlb2-14362251.ml-form-embedContainer h4, #mlb2-14362251.ml-form-embedContainer p, #mlb2-14362251.ml-form-embedContainer span, #mlb2-14362251.ml-form-embedContainer button { text-transform: none !important; letter-spacing: normal !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper { background-color: #f6f6f6; border-width: 0px; border-color: transparent; border-radius: 4px; border-style: solid; box-sizing: border-box; display: inline-block !important; margin: 0; padding: 0; position: relative; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedPopup, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedDefault { width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper.embedForm { max-width: 100%; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-left { text-align: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-center { text-align: center; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-default { display: table-cell !important; vertical-align: middle !important; text-align: center !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-align-right { text-align: right; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedHeader img { border-top-left-radius: 4px; border-top-right-radius: 4px; height: auto; margin: 0 auto !important; max-width: 100%; width: 990px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody { padding: 20px 20px 0 20px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody.ml-form-embedBodyHorizontal { padding-bottom: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent { text-align: left; margin: 0 0 20px 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent h4, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent h4 { color: #1F5014; font-family: ‘Anton’, sans-serif; font-size: 30px; font-weight: 400; margin: 0 0 10px 0; text-align: center; word-break: break-word; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p { color: #000000; font-family: ‘Palatino Linotype’, ‘Book Antiqua’, Palatino, serif; font-size: 18px; font-weight: 400; line-height: 24px; margin: 0 0 10px 0; text-align: center; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ul, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ul, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol { color: #000000; font-family: ‘Palatino Linotype’, ‘Book Antiqua’, Palatino, serif; font-size: 18px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol ol { list-style-type: lower-alpha; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent ol ol ol, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent ol ol ol { list-style-type: lower-roman; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p a, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p a { color: #000000; text-decoration: underline; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-block-form .ml-field-group { text-align: left!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-block-form .ml-field-group label { margin-bottom: 5px; color: #333333; font-size: 14px; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; font-weight: bold; font-style: normal; text-decoration: none;; display: inline-block; line-height: 20px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedContent p:last-child, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-successBody .ml-form-successContent p:last-child { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody form { margin: 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow { margin: 0 0 20px 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow { float: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent.horozintalForm { margin: 0; padding: 0 0 20px 0; width: 100%; height: auto; float: left; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow { margin: 0 0 10px 0; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow.ml-last-item { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow.ml-formfieldHorizintal { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; height: auto; line-height: 21px !important; margin-bottom: 0; margin-top: 0; margin-left: 0; margin-right: 0; padding: 10px 10px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input::-webkit-input-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input::-webkit-input-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input::-moz-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input::-moz-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input:-ms-input-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input:-ms-input-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input:-moz-placeholder, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input:-moz-placeholder { color: #333333; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow textarea, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow textarea { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; height: auto; line-height: 21px !important; margin-bottom: 0; margin-top: 0; padding: 10px 10px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { border-color: #cccccc!important; background-color: #ffffff!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow input.custom-control-input[type=”checkbox”]{ box-sizing: border-box; padding: 0; position: absolute; z-index: -1; opacity: 0; margin-top: 5px; margin-left: -1.5rem; overflow: visible; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { border-radius: 4px!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=checkbox]:checked~.label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox input[type=checkbox]:checked~.label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox input[type=checkbox]:checked~.label-description::after { background-image: url(“data:image/svg+xml,%3csvg xmlns=’http://www.w3.org/2000/svg’ viewBox=’0 0 8 8’%3e%3cpath fill=’%23fff’ d=’M6.564.75l-3.59 3.612-1.538-1.55L0 4.26 2.974 7.25 8 2.193z’/%3e%3c/svg%3e”); } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::after { background-image: url(“data:image/svg+xml,%3csvg xmlns=’http://www.w3.org/2000/svg’ viewBox=’-4 -4 8 8’%3e%3ccircle r=’3′ fill=’%23fff’/%3e%3c/svg%3e”); } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input:checked~.custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox input[type=checkbox]:checked~.label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox input[type=checkbox]:checked~.label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=checkbox]:checked~.label-description::before { border-color: #000000!important; background-color: #000000!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label::after { top: 2px; box-sizing: border-box; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::after { top: 0px!important; box-sizing: border-box!important; position: absolute; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before { top: 0px!important; box-sizing: border-box!important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-control-label::before { position: absolute; top: 4px; left: -1.5rem; display: block; width: 16px; height: 16px; pointer-events: none; content: “”; background-color: #ffffff; border: #adb5bd solid 1px; border-radius: 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-control-label::after { position: absolute; top: 2px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::before, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::before { position: absolute; top: 4px; left: -1.5rem; display: block; width: 16px; height: 16px; pointer-events: none; content: “”; background-color: #ffffff; border: #adb5bd solid 1px; border-radius: 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after { position: absolute; top: 0px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { position: absolute; top: 0px!important; left: -1.5rem; display: block; width: 1rem; height: 1rem; content: “”; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-radio .custom-control-label::after { background: no-repeat 50%/50% 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .custom-checkbox .custom-control-label::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedPermissions .ml-form-embedPermissionsOptionsCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-interestGroupsRow .ml-form-interestGroupsRowCheckbox .label-description::after, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description::after { background: no-repeat 50%/50% 50%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-control, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-control { position: relative; display: block; min-height: 1.5rem; padding-left: 1.5rem; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-input, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-input { position: absolute; z-index: -1; opacity: 0; box-sizing: border-box; padding: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-radio .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-radio .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-checkbox .custom-control-label, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-checkbox .custom-control-label { color: #000000; font-size: 12px!important; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; line-height: 22px; margin-bottom: 0; position: relative; vertical-align: top; font-style: normal; font-weight: 700; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-fieldRow .custom-select, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow .custom-select { background-color: #ffffff !important; color: #333333 !important; border-color: #cccccc; border-radius: 4px !important; border-style: solid !important; border-width: 1px !important; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; line-height: 20px !important; margin-bottom: 0; margin-top: 0; padding: 10px 28px 10px 12px !important; width: 100% !important; box-sizing: border-box !important; max-width: 100% !important; height: auto; display: inline-block; vertical-align: middle; background: url(‘https://assets.mlcdn.com/ml/images/default/dropdown.svg’) no-repeat right .75rem center/8px 10px; -webkit-appearance: none; -moz-appearance: none; appearance: none; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow { height: auto; width: 100%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal { width: 70%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-button-horizontal { width: 30%; float: left; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-button-horizontal.labelsOn { padding-top: 25px; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .horizontal-fields { box-sizing: border-box; float: left; padding-right: 10px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow input { background-color: #ffffff; color: #333333; border-color: #cccccc; border-radius: 4px; border-style: solid; border-width: 1px; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px; line-height: 20px; margin-bottom: 0; margin-top: 0; padding: 10px 10px; width: 100%; box-sizing: border-box; overflow-y: initial; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow button { background-color: #000000 !important; border-color: #000000; border-style: solid; border-width: 1px; border-radius: 4px; box-shadow: none; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif; font-size: 14px !important; font-weight: 700; line-height: 20px; margin: 0 !important; padding: 10px !important; width: 100%; height: auto; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-horizontalRow button:hover { background-color: #1F5014 !important; border-color: #1F5014 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow input[type=”checkbox”] { box-sizing: border-box; padding: 0; position: absolute; z-index: -1; opacity: 0; margin-top: 5px; margin-left: -1.5rem; overflow: visible; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow .label-description { color: #000000; display: block; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif; font-size: 12px; text-align: left; margin-bottom: 0; position: relative; vertical-align: top; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label { font-weight: normal; margin: 0; padding: 0; position: relative; display: block; min-height: 24px; padding-left: 24px; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label a { color: #000000; text-decoration: underline; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label p { color: #000000 !important; font-family: ‘Open Sans’, Arial, Helvetica, sans-serif !important; font-size: 12px !important; font-weight: normal !important; line-height: 18px !important; padding: 0 !important; margin: 0 5px 0 0 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow label p:last-child { margin: 0; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit { margin: 0 0 20px 0; float: left; width: 100%; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button { background-color: #000000 !important; border: none !important; border-radius: 4px !important; box-shadow: none !important; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif !important; font-size: 14px !important; font-weight: 700 !important; line-height: 21px !important; height: auto; padding: 10px !important; width: 100% !important; box-sizing: border-box !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button.loading { display: none; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-embedSubmit button:hover { background-color: #1F5014 !important; } .ml-subscribe-close { width: 30px; height: 30px; background: url(‘https://assets.mlcdn.com/ml/images/default/modal_close.png’) no-repeat; background-size: 30px; cursor: pointer; margin-top: -10px; margin-right: -10px; position: absolute; top: 0; right: 0; } .ml-error input, .ml-error textarea, .ml-error select { border-color: red!important; } .ml-error .custom-checkbox-radio-list { border: 1px solid red !important; border-radius: 4px; padding: 10px; } .ml-error .label-description, .ml-error .label-description p, .ml-error .label-description p a, .ml-error label:first-child { color: #ff0000 !important; } #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow.ml-error .label-description p, #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-checkboxRow.ml-error .label-description p:first-letter { color: #ff0000 !important; } @media only screen and (max-width: 400px){ .ml-form-embedWrapper.embedDefault, .ml-form-embedWrapper.embedPopup { width: 100%!important; } .ml-form-formContent.horozintalForm { float: left!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow { height: auto!important; width: 100%!important; float: left!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal { width: 100%!important; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal > div { padding-right: 0px!important; padding-bottom: 10px; } .ml-form-formContent.horozintalForm .ml-button-horizontal { width: 100%!important; } .ml-form-formContent.horozintalForm .ml-button-horizontal.labelsOn { padding-top: 0px!important; } } .ml-mobileButton-horizontal { display: none; } #mlb2-14362251 .ml-mobileButton-horizontal button { background-color: #000000 !important; border-color: #000000 !important; border-style: solid !important; border-width: 1px !important; border-radius: 4px !important; box-shadow: none !important; color: #ffffff !important; cursor: pointer; font-family: ‘Lucida Sans Unicode’, ‘Lucida Grande’, sans-serif !important; font-size: 14px !important; font-weight: 700 !important; line-height: 20px !important; padding: 10px !important; width: 100% !important; } @media only screen and (max-width: 400px) { #mlb2-14362251.ml-form-embedContainer .ml-form-embedWrapper .ml-form-embedBody .ml-form-formContent.horozintalForm { padding: 0 0 10px 0 !important; } .ml-hide-horizontal { display: none !important; } .ml-form-formContent.horozintalForm .ml-button-horizontal { display: none!important; } .ml-mobileButton-horizontal { display: inline-block !important; margin-bottom: 20px;width:100%; } .ml-form-formContent.horozintalForm .ml-form-horizontalRow .ml-input-horizontal > div { padding-bottom: 0px !important; } } @media only screen and (max-width: 400px) { .ml-form-formContent.horozintalForm .ml-form-horizontalRow .horizontal-fields { margin-bottom: 10px !important; width: 100% !important; } }

function ml_webform_success_14362251() { var $ = ml_jQuery || jQuery; $(‘.ml-subscribe-form-14362251 .row-success’).show(); $(‘.ml-subscribe-form-14362251 .row-form’).hide(); } fetch(“https://assets.mailerlite.com/jsonp/918262/forms/119753320103413631/takel”)