Financial Ratios and Ratio Analysis
- Overview
A good way to monitor the health of your business is to measure many different financial ratios.
It's difficult to take steps to support your company's growth without first understanding how your organization stands out from the competition. If you're looking to assess your company's health and identify opportunities for improvement, look at your company's financial ratios. These can be useful indicators of how well your company is performing across multiple financial areas.
Financial ratios are calculated based on information from your company's financial statements. This includes your cash flow statement, balance sheet, and profit and loss (P&L) statement. Before you start calculating your company's financial ratios, take the time to gather the relevant documents.
- Why Ratio Analysis Is So Important
[More to come ...]