The lowdown: Data fingers that add value
Financial ratio analysis is one of the simplest techniques a business owner can use to measure their company’s performance.
It allows a business owner and their advisers to look at the performance of the business across a number of time periods as well as benchmarking performance against other businesses in your particular industry.
Ratio analysis positions a business with regard to profitability, liquidity, asset utilisation, gearing and market value. It facilitates better decision making and validates the effectiveness of management interventions.
Financial ratios are an excellent way of analysing a company’s financial ...
