6 Important Financial Ratios Made Easy

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1. Working Capital Ratio
2. Debt-to-Equity Ratio
3. Gross Profit Margin
4. Cash Ratio
5. Inventory Turnover Ratio
6. Fixed Asset Turnover Ratio
What Is Ratio Analysis?
How and When to Conduct Analyses
You want a snapshot of your business's performance. This could be because you just want a benchmark or because you’re considering a big move like selling the company. You’re looking to take on investors or apply for a business loan. In these cases, your investors or creditors may request certain financial ratios to determine how much of a risk your company presents to them. You’re curious about where your business stands in relation to others in your industry..
Pros and Cons of Working With Financial Ratios
Pros of Working With Financial Ratios
Cons of Working With Financial Ratios
Own Your Business’s Financial Health
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About the Author
Su Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
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