Another busy year is over, and business owners are sending annual financial information to their accountants. Most owners will want to understand what to look for when reviewing balance sheet statements. No matter how large a business is, every owner wants to prepare for the upcoming year to see if they can be more profitable.
These ratios are just a few examples of what business owners should review on an annual basis. Most businesses review these quarterly or even monthly to gain tighter control of their money.
You may wish to consult your tax professional to gain a better understanding of these, or your Harborstone Business Lender could also help.
Introduction
Current ratio (liquidity)
Debt to equity ratio
Sales to assets
Return on assets