FINANCIAL ILLITERACY

38%

The average score when a group of more than 300 execs and supervisors took a basic financial literacy exam.

69%

of test takers couldn’t pick the definition of “free cash flow.” ( Psst: It’s the cash available to your business after expenses, including capital expenditures.)

62%

thought discounts offered by sales reps had no impact on gross margin.

57 %

of U.S. managers taking the exam were unable to distinguish profit from cash.

46 %

understood why return on assets is so important—because it indicates how efficiently management is using assets to generate earnings.