Business Ratio Analysis
Overview
Improve your business by analyzing
your financial statements. You can obtain a snapshot
of your business or compare your figures to those of
prior periods or other businesses in your industry automatically.
What is it?
Financial statements (the profit and
loss statement and balance sheet) measure the performance
and position of the business.
Other useful information on specific
aspects of a business can be obtained by performing
ratio analysis on the financial statements. Put simply,
ratios are simply the mathematical representation of
the relationship between two numbers.
These ratios can then be analyzed to
reveal the performance of the business and the effect
of any changes that are made. |
