You probably learned about ratios—fractions, percentages, decimals—at some point in your education. But how often do you use them in your business? Using ratios to interpret your financial data can provide you with objectivity and precision, and a comprehensive grasp of everything your business does. Every line item on your financial statements tells you something about your business that personal observation can’t match.
In this course, you’ll learn how to use and interpret ratio analysis options so you can determine which ones truly matter to the success of your business. Different categories of ratios can help you achieve financial stability, improve your operational efficiency, or determine the valuation of your company prior to a sale. Ratios vary in significance depending on the age of your company, your industry and your objectives.