Financial Ratios for Businesses to Track
Financial Ratios for Business -Simply said financial ratios are tools that may help you turn your raw data into information that will help you manage your organization more efficiently. Gross sales and net profits are two measures that many small business owners constantly review, but they can only provide so much information. Simply said, financial ratios are tools that may help you turn your raw data into information that will help you manage your organization more efficiently. Gross sales and net profits are two measures that many project report owners constantly review, but they can only provide so much information. Financial Ratios for Businesses to Track There are several ratios that you may track, but to avoid being overwhelmed, you should focus on a small number of ratios. These are the ratios you should include in your shortlist: Cash Flow to Debt (Net Income + Depreciation) ÷ Total Debt = Cash Flow to Debt Ratio Month after month, bu...