Calculating financial ratios is an important component of analyzing a business that can be extremely helpful to business owners. By using the information from your business' financial statements, you ...

There are several ways of evaluating the profitability of a business, and one of the simplest ways is with the total margin ratio. This ratio shows a company's profitability relative to the total ...

It's important to emphasize that you need to account for all revenue, including operating revenue and non-operating revenue, such as investment income. Similarly, be sure to account for all expenses, ...

Profits may look good, but it's cash that pays the bills. As a small business owner, do you track the liquidity ratios of your business? You should be calculating these ratios on at least a weekly ...

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee ...

Here are some of the most common, and most useful, financial ratios you can calculate for your business, as well as links to more details about the most relevant ones. 1. Current ratio-- It's current ...