Located at:
38 Fraley Street
Kane, PA 16735
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Fax (814) 837-2267
Phone( (814) 837-9150
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Located at: 38 Fraley Street Kane, PA 16735 -------------------------------------------------- Fax (814) 837-2267 Phone( (814) 837-9150 |
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Ratio Analysis Using Your Financial Information |
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Is it more important to know what the numbers mean than how the numbers got there? Its an art to look at ratios and spot the weak areas on financial statements. Good financial information and planning are vital for even the smallest company. Your operations should be built around monthly financial statements, budgets and of course your objectives. You really don't want to run your business without the technical tools and advise you need. One thing your don't want to say is "I'll buy that equipment or service when I'm successful." You can build a high overhead business if you don't have the technical tools and advise you need. Your financial statements are a reality check on how well your company is doing. They are the only real report card the company has. You need future savvy for your company financial future. If you own a business, you should personally understand and control the financial aspects of every decision. Halcolm Bard CPA and Their Consultants' can help you. |
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Various
Ratio Analysis To Consider
Every
business should look at its ratios and spot the weak areas on
financial statements. There are various types of ratios to look
at including the following to mentioned a few. |
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Some examples are Current Ratio, Quick Ratio, Cash to Current Assets, Cash to Current Liabilities, Working Capital, Accounts Receivable Turnover, Inventory Turnover, and Liquidity Index. |
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Some examples are Number of days to sell
inventory, Daily Sales, Days Sales in Accounts Receivable, Daily
Purchases, Days Purchases in Accounts Payable, and Days in Cash Cycle. |
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Some examples are Gross Margin
Percentage, Operating Income Percentage, Net Income Percentage, Return
on Assets, Return on Stockholder's Equity, and Return on Long-Term Debt
and Stockholder's equity. |
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Some examples are Equity to Total Debt,
Equity to Long-Term Debt, Total Debt to Total Capital, Times Interest
Earned, Equity to Net Fixed Assets, Financial Leverage, and Equity
Growth Rate. |
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Some examples are Sales to Cash and
Equivalents, Sales to Accounts Receivable, Sales to Inventory, Sales to
Working Capital, Sales to Net Fixed Assets, and Sales to Total Assets |
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